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.
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.
|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|
|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|
Article 13.19 of the Code of Administrative Offences of the Russian Federation provides administrative liability in the form of penalties for non-provision and delay in provision of primary statistical data or errors in statistical reports: for public officers – from 10 000 to 20 000 rubles, for legal entities – from 20 000 to 70 000 rubles.
Secondary offence is subject to fines from 30 000 to 50 000 rubles, and for legal entities – from 100 000 to 150 000 rubles.
Russian Federal Statistics Service by its letter from April 24, 2019 No. SE-04-4/55SMI «On updates of reports to the Federal Statistics Service» explains that respondents that have made errors in primary statistical data must send corrected data within 3 days since their finding (by themselves, of after written notifications of regional statistics bodies or other subjects of official statistics service). The corrected data is to be accompanied by explanations of corrections and further details if necessary.
In these cases penalties are not to be applied due to attenuating circumstances, according to Articles 4.1 and 4.2 of the Code of Administrative Offences of the Russian Federation.
Delays in provision of corrected reports are to be considered by regional statistics bodies in each case individually.