Sberbank topped the ranking of most expensive companies in Russia

© RIA Novosti / Ramil to Setdiscoverable in photomontages savings Bank. Archive photoSberbank topped the ranking of most expensive companies in Russia© RIA Novosti / Ramil to Setdiscoverable the image Bank

The total market capitalization of the 100 most expensive public Russian companies at the end of 2017 increased by 1.3% to 643 billion dollars; the top three has not changed, but the new leader was Sberbank, according to the annual ranking of the 100 most valuable public companies at the beginning of 2018, compiled by the Agency RIA Rating.

For comparison, in 2016 the total growth of capitalization was much higher at 58%, or $ 233 billion, the authors say.

The list of the 100 largest public companies in Russia over the past year has not changed very much. By the end of 2017, nine new companies were able to get into this list, including five companies through the IPO and SPO (En+ Group, «Children’s world», «Lenenergo», «Ingrad» and «pharmacy chain 36,6»).

The top three most expensive companies in Russia, and in 2016, has not changed, but all three companies reversed. «Rosneft», which in 2016, moved from the pedestal of long-time leader — «Gazprom», in 2017, are unable to stay in the first place and at the end of last year took third place. This is due to lower capitalization of Rosneft 24% for the year to 53.3 billion dollars.

Leading position in the ranking is now occupied by the savings Bank, the capitalization of which for the last year grew by nearly 40%, to 84 billion dollars. On the second line at the end of last year is a long time leader – «Gazprom» with a market capitalization 53,35 billion dollars. The capitalization of «Gazprom» decreased by 11%, but it still allowed him a little (just a $ 45 million) to overtake «Rosneft».

Top ten

In the top ten, according to the rating, also is located the company «LUKOIL», «NOVATEK», «Norilsk Nickel», «Gazprom Neft», «Tatneft», «Surgutneftegaz» and NLMK. Two companies for the year left the top 10, and top ten, respectively, in two companies-the beginner.

Left among the ten largest companies by capitalization of Russian retailer «Magnit» and VTB. VTB moved up from tenth place at the end of 2016 to 14th place at the beginning of 2018 due to the reduction of the capitalization of 33%.

Retailer «Magnit» over the past year, the market capitalization decreased even more – by 39%, or 6.6 billion dollars, which resulted in the loss of eight places in the rankings, and now this company is located on 16th place.

Instead of leaving the top ten most expensive companies became «Tatneft» and NLMK. The minimum amount of market capitalization that is required for getting into the top 10, for the year was less – 15.3 billion to $ 15.9 billion a year earlier.

Among the 100 most valuable companies with a market capitalization in 2017 rose 55, which is considerably less than last year’s result (91). In General, five companies growth of capitalization in 2017 was a multiple of that in most cases was due to the additional issue. For comparison, in 2016, 25 companies have shown a multiple growth of capitalization that most often determined by the dynamics of the stock.

The leaders of the fall

The greatest decrease in capitalization in 2017 of the companies included in the rating showed the company in the financial sector FG «Future». Its market capitalization during the year declined by more than half. The main reason for this, according to experts RIA Rating, have become significant problems in other financial companies (Bank «Otkrytie», Bank and Promsvyazbank).

The number of companies with a significant decline in market capitalization has also been found – AFK «System», «Magnet», «Bashneft», VTB, «Nizhnekamskneftekhim», «Feed», Chelyabinsk zinc plant, Rusagro, Uralkali and Polyus. According to analysts at RIA Rating, a decrease in the capitalization of lead for the negative dynamics was mainly due to personal reasons.

As before, the largest contribution to the total cost of the most expensive companies in 2017 made corporations associated with oil and gas production and refining. They accounted for 39,9% of the total capitalization of the Top 100 most expensive companies of Russia, which is 4.2 percentage points lower than a year earlier. The reduction in the share connected with negative dynamics of the value of some of the largest companies from this sector.

The share of market capitalization per company in the financial sector for the year increased to 16.9% vs. 15.8% in the previous survey, and their market value has close to 110 billion dollars. Third of the total capitalization of the industry was metallurgy. The metallurgical company accounts for 13.9% of the market value of the largest-capitalization Russian companies. In General 2017 can be called the «year of metal», because after the steel price and the coal quotations of their shares showed a rapid positive dynamics.

According to experts RIA Rating, in 2018, the likely continuation of growth of quotations of the majority of companies, which began in mid-2017. For many of them the low base effect has been exhausted and growth should not be very strong.

«Noteworthy that external risks remain high, in particular, possible severe tightening of sanctions by the US that can be a «black Swan» for the Russian stock market. However, a number of sectors and companies of them will continue to benefit from the stabilization of the economy, lower inflation and easing of monetary policy,» said analysts at RIA Rating.

RIA Rating is a universal rating Agency of Federation of MIA «Russia today», specializing in the assessment of the socio-economic situation of regions of Russia, the economic situation of the companies, banks, industries, and countries. The main activities of the Agency are: the creation of the ratings of Russian regions, banks, businesses, municipalities, insurance companies, securities, other economic objects; integrated economic research in the financial, corporate and public sectors.