On Monday, the price of Gazprom’s common shares surpassed the 2008 record high. The continuous increase in stock market prices for gas in Europe is one of the major reasons boosting the company’s capitalization, and there are signs that the energy industry will only expand, TASS quotes Rossiyskaya Gazeta.
On Monday afternoon, Gazprom shares peaked at 369.9 rubles ($5.07) on the Moscow Stock Exchange. The rise continued throughout the evening, with their price approaching 380 rubles ($5.21) around 21:00 Moscow time. Since the previous high of 369.5 rubles in the spring of 2008, this is another record high.
Thus, Gazprom’s capitalization reached $100 billion, but with the same share prices in 2008, the ruble was considerably stronger, and the company’s capitalization was 3.5 times more.
There is a de facto global energy crisis occurring as a result of the pandemic’s slow departure, which is followed by a spasmodic rise in gasoline demand, with predictions not matching actual usage.
As a consequence, gas supplies in a number of nations, especially the EU, have been reduced. Furthermore, a number of nations are pushing a transition to “green energy,” which raises the price of gas.
Gazprom’s stock is increasing against the backdrop of rising European gas costs. They exceeded $1,200 per 1,000 cubic meters on Monday, quadrupling since the start of the year. Gas in Asia is also becoming more costly. At the same time, Gazprom is meeting its contractual responsibilities, as the firm has frequently said.
According to VTB Capital’s analytical study, the price of Gazprom shares has increased 2.3-fold since last November and has exceeded their 12-month projected price of $4.50. Albert Koroev, an expert at BCS World of Investments, believes that prices may stay fixed after the record high was repeated and the accumulated overbought condition was resolved.
At the same time, if the overbought is eliminated, Gazprom shares may rise beyond 400 rubles ($5.49) in the case of a prolonged gas deficit against the backdrop of high European gas prices and the opening of Nord Stream 2. According to the expert, the professional prognosis for the company’s shares is usually favorable.
According to Finam analyst Sergey Kaufman, the oil and gas industry continues to support the development of Russia’s stock market. According to his study, in the midst of rising gas costs, coal prices in Europe rose by one-third in ten days, bolstering the shares of Mechel and Novatek.
