Top-10 of the most expensive companies of Russia in terms of market capitalization

ranking 21/06/2019

Good news at the Russian stock market: MOEX Index has several times updated historical peak in June 2019 and is close to the value of 2800 items. General capitalization of companies amounted to 663 billion USD or 40% of GDP on June, 14.

Capitalization is total market value of all shares of a company at specified date.

JSC GAZPROM is the most expensive company of Russia with 84,1 billion USD market capitalization. Besides, monopoly value has on almost 70% increased within a year (s. the table 1). The main reason for increasing quotation prices was reconsideration of dividends for 2018 to the higher side: from 10,43 RUB to 16,61 RUB per share, that exceeded expectations of the shareholders.

Securities of other participants of the ranking also showed positive trends.

If domestic stock market is considered at a global basis, despite significant growth, some peculiar downsides should be mentioned:

  • Total capitalization of Russian companies in currency denomination didn’t exceed 100% of GDP till now, as it was in 2007-2008. In other words, Russia is the only large country that did not grow domestic capital for the last ten years.
  • Investments in shares are not in mass demand not only for foreign investors but for local ones. Neither companies nor citizens consider securities as instrument for capital maintenance and accumulation.
  • Stock market of the RF is limited by twenty liquid securities, majority of them – state companies of fuel and energy complex.
  • Russian companies are underestimated. For example, currently, capitalization of Microsoft exceeds 1 trillion USD, that makes it the most expensive company in the world – it is 1,5 times exceeds capitalization of the total stock market of the RF. Besides, assets value of JSC GAZPROM for 2018 was 299,5 billion USD, Microsoft – 258,9 billion USD. Consequently, assets of Gazprom 3,6 times exceed market capitalization, and market capitalization of Microsoft is 3,9 times higher than its assets value.
Table 1. Top-10 of the largest public companies of Russia in terms of market capitalization
Rank Company Capitalization on 14.06.2019, billion USD Capitalization on 15.06.2018, billion USD Increase (decrease) of capitalization,% Scope of activities
1 JSC GAZPROM 84,1 50,0 68,2 Fuel and energy complex
2 JSC SBERBANK 79,1 69,3 14,1 Banks
3 JSC ROSNEFT OIL COMPANY 66,3 62,3 6,4 Fuel and energy complex
4 JSC NOVATEK 60,8 37,4 62,6 Fuel and energy complex
5 JSC LUKOIL Oil Company 59,6 52,9 12,7 Fuel and energy complex
6 JSC Mining and Metallurgical Company NORILSK NICKEL 35,4 26,9 31,6 Metallurgical industry
7 JSC Gazprom Neft 28,9 23,5 23,0 Fuel and energy complex
8 JSC Tatneft 25,6 21,7 18,0 Fuel and energy complex
9 JSC NOVOLIPETSK STEEL 16,8 15,5 8,4 Metallurgical industry
10 JSC SEVERSTAL 14,4 13,4 7,5 Metallurgical industry