Russian stocks rebound after Yukos seizure

Russian stocks rose today as the market, stunned by the Russian prosecutors' attacks on oil major YUKOS, took heart from a change…

Russian stocks rose today as the market, stunned by the Russian prosecutors' attacks on oil major YUKOS, took heart from a change of command in the Kremlin with the appointment of a new presidential chief of staff.

Russian prosecutors yesterday froze a controlling block of shares in YUKOS held by the company's Chief Executive Mikhail Khodorkovsky - who was arrested and charged with tax evasion and fraud at the weekend - and his associates.

YUKOS shares, still off more than 20 per cent since news broke on Saturday that Chief Executive Mr Mikhail Khodorkovsky had been arrested, rose 5.61 per cent by 7.50 a.m. to $11.30.

The rouble-denominated MICEX exchange share index showed the broader market following, with a gain of 3.49 per cent to 464.41 per cent.

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The rouble opened weaker against the dollar but recovered slightly after the stock market opened, although the Russian currency remained below the previous day's close.

Russia's benchmark RTS share index dived over 8 per cent the previous session, led down by YUKOS shares falling 12 per cent as investors fretted that Kremlin "hawks" might try to reassert state control over the economy.