Capitalization growth of state and private companies in russia. Growth in capitalization of state and private companies in Russia The increasing role of cryptocurrencies in various sectors of the economy

The Russian concern has displaced the American corporation ExxonMobil, which led this rating for 12 years. In addition to Gazprom, one more Russian company got into the top 10 of the S&P rating - (6th place). ranked 14th, Rosneft ranked 22nd.

The sites and almost simultaneously published materials with the headlines: “What are the sanctions? ExxonMobil has been replaced by Gazprom. The author of a note in Forbes notes that the first place of the Russian gas concern testifies to the ability of its management to resist low prices for hydrocarbons and the ban on obtaining cheap loans in the West, and at the same time maintain a leading position in the European gas market, in which American companies are unsuccessfully trying to gain a foothold. ...

Recall that the United States recently passed a law on new sanctions against Russia. The financing period for Russian energy companies will be reduced from 90 to 60 days. The maximum financing period for sanctioned Russian banks will be reduced from 30 to 14 days.

A separate line was announced about opposition to the construction of the Nord Stream-2 gas pipeline, which is being led by Gazprom.

At the end of September, he announced November 28 as the date for the introduction of new restrictions on the financing of banks and companies in the Russian oil and gas sector, specified in this law.

But there is one essential detail that darkens the joy of the success of the "national heritage", which does not care about sanctions. Gazprom is a cheap asset. Analyst at Alor Broker Evgeny Koryukhin compared the capitalization of companies from the top ten S&P Global Platts rating for Gazeta.Ru.

In this top ten, Gazprom takes only 5th place in terms of capitalization. Moreover, the ExxonMobil corporation is worth almost 7 times more than Gazprom, and takes only 9th place in the rating.

The French one closes the top ten, but its capitalization exceeds Gazprom's by 2.6 times, the Chinese China Petroleum is twice as expensive, and the Indian Reliance Industries is one and a half times more expensive.

Evgeny Koryukhin notes that Gazprom's proven gas reserves are worth more than $ 10 trillion (with an average gas price of $ 200 per 1,000 cubic meters). By comparison, the proven hydrocarbon reserves of Exxon Mobil (the world's largest oil company) are estimated at just over $ 1.2 trillion (at an average oil price of $ 50 per barrel).

“Russian companies have been rated lower than their counterparts from developed countries for a long time. Even at the household level, we are accustomed to the cost of eighteen Gazprom. At the same time, Gazprom's EBITDA is only 1.5 times lower. Compare - it costs 18 times cheaper, and EBITDA is only 1.5 times lower, ”

- says the deputy general director for the development of retail business of the investment company Veles Capital.

It should be emphasized that, naturally, not only Gazprom is underestimated, but also domestic companies from other sectors.

If speak about Russian market, then for many fundamental and technical factors it looks underestimated, agrees, an analyst at Alfa Capital.

“If we compare the dynamics of Russian stock indices with developed and developing countries, the Russian, to a large extent, lag behind. But there are practically no prerequisites for this, since unemployment in Russia is one of the lowest in the world, GDP growth is more than 2%, and what is important - the profits of companies are growing, ”he notes.

At the same time, if you look at the financial indicators of Gazprom and compare them with those of competitors, then Gazprom obviously wins. The Russian company has a high dividend yield of 6.5%, while the average dividend yield of foreign peers is 3.5%. If we talk about the P / E multiplier (price / earnings ratio - capitalization / net profit), then Gazprom has one of the lowest, 3.9, which indicates a strong underestimation of the company's market value relative to its current profit.

For example, this figure is 30 for Exxon, 29, even for 22. Return on capital is significantly higher than foreign peers and is about 5.9% against the industry average of 3%. The same can be said for the return on investment.

At the same time, Evgeny Koryukhin recalls that before the start of the global financial crisis, in June 2008, Gazprom was worth $ 360 billion. And its capitalization lagged behind Exxon Mobil's capitalization not so much - the gap was only about $ 50 billion. At that time, the company's management predicted the growth of its capitalization to $ 1 trillion.

These plans never came true - oil and gas prices fell, bubbles in financial markets collapsed, speculative money left Russian assets. And they never returned.

Today analysts say that the underestimation of the Russian market is chronic and the situation is unlikely to be drastically changed in the near future. There are several reasons for this. These include poor working conditions for foreign investors, an underdeveloped financial market, relatively low operating efficiency of the companies themselves, as well as instability. course national currency.

“Investors are scared off by the total state control over the industry, economic sanctions, not always obvious investment policies of companies and the quality of corporate governance,” says Artem Kopylov.

But, perhaps, the main factor is political problems. Confrontation with the West leaves almost no chance that Gazprom or someone else has become the leader in terms of capitalization.

“I think that Western investors should become more inclined to buy our shares, it is necessary for the political situation to improve significantly,” says Alexei Bushuev.

In order for investors to massively buy securities of Russian companies, it is necessary that they believe that there will be no devaluation of the local currency, that Russia will not get involved in geopolitical conflicts in other countries, thereby bringing on a wave of sanctions, that the government will be able to create conditions under which the economy will reach GDP growth rates above 3% per year, Evgeny Koryukhin lists.

The only thing left for Russian companies to increase capitalization is to improve operating and investment efficiency, analysts say. Quotes can support programs of buyback by companies of their own shares, an increase in dividends, as well as a stable ruble exchange rate.

The chief analyst believes that a 20-25% increase in Gazprom's shares is quite possible. Firstly, due to the fact that the shares remain fundamentally undervalued, and secondly, due to the expected growth in export prices in the European direction this fall and an increase in purchases.

But globally for Russian assets, the situation is unlikely to change in the near future, sums up Alexei Bushuev.

"I cited figures that showed that in Russia, mainly pensions, education, medicine, the army and other officials are financed by state-owned companies, their daughters, as well as numerous budgetary institutions, which in total control 70% of the Russian economy. a source of replenishing the budget of the Russian Federation Individuals in the Russian Federation form approximately 10% of the budget, while in the USA this share is approximately 64%.

Below we will see how in last years capitalization of the most expensive Russian companies changed:

* h-private company

I classified ALROSA, the Moscow Exchange, and the Novorossiysk Commercial Sea Port as public-private companies.

As can be seen from the table, from 2014 to 2017, the capitalization of state-owned companies in $ increased by an average of 207.18%, and of private companies by 85.09%.

1. UAC - 1279.15%
2. Novorossiysk Commercial Sea Port - 585.75%
3. Tinkoff Bank - 490.93%
4. Aeroflot - Russian Airlines - 326.69%
5. Sberbank - 307.83%
6. MMK - 293.65%
7. FGC UES - 260.23%
8. Pole - 209.82%
9.X5 Retail Group - 202.10%
10. Rosseti - 134.20%
11. Yandex - 121.64%
12. NLMK - 121.56%
13. Acron Group - 105.04%
14. Tatneft - 99.85%
15. Corporation "VSMPO-Avisma" - 97.38%
16. Mail.ru Group - 86.73%
17. Bashneft - 78.44%
18. Moscow Exchange - 75.35%
19. Severstal - 75.27%
20. Gazprom Neft - 69.80%
21. PIK Group - 65.39%
22. EVRAZ - 61.57%
23. MTS - 51.93%
24. NOVATEK - 50.97%
25. RusHydro - 48.85%
26. Lukoil - 46.13%
27. PhosAgro - 45.62%
28. Rosneft - 44.93%
29. Polymetal 41.26%
30. Norilsk Nickel - 28.52%
31. ALROSA - 17.71%
32. Surgutneftegas - 13.70%
33. RUSAL - 4.76%

UAC became the fastest growing company. Apparently, this was facilitated by the introduction of advanced industrial production technologies. For example, the United Aircraft Corporation (UAC) has implemented the concept of a virtual design bureau, when engineers from several design bureaus and production sites work on the design of an aircraft model in a single digital environment.

To assess the changes that have occurred among Russian issuers and on the Russian stock market as a whole, the experts of the RIA Rating agency have prepared the next annual, fifth in a row, Rating of the 100 most expensive public companies in Russia as of the beginning of 2018.

The main ruble index (Moscow Exchange) dropped 5.5% over the year, while the dollar index (RTS) rose only 0.2%. Nevertheless, despite the decline in the index, among the largest companies in terms of capitalization, most of them showed an increase in quotations in 2017. According to the rating, the total capitalization of the TOP-100 Russian companies over the past year increased by 1.3% or by $ 8.4 billion to $ 643 billion as of December 29, 2017. For comparison, in 2016 the growth was much higher - + 58% or +233 billion dollars. The median capitalization of 100 Russian public companies has not changed and amounted to $ 1.8-1.9 billion. In turn, the minimum capitalization with which it was possible to get into the TOP-100 of the most expensive companies at the end of 2017 was $ 318 million, against $ 267 million in the last year's rating and 157 as of December 31, 2015. (Thus, the bottom bar for joining the top 100 most expensive companies in Russia has doubled in two years.

According to the rating, the following companies are also in the top ten: Sberbank, Gazprom, Rosneft, LUKOIL, NOVATEK, Norilsk Nickel, Gazprom Neft, Tatneft, Surgutneftegaz and NLMK. It is worth noting that two companies at once left the TOP-10 at the end of the year, and, accordingly, there are two newcomers in the top ten. Magnit and VTB Bank have left the ten largest companies in Russia in terms of capitalization.

Among the 100 most valuable companies, market capitalization in 2017 increased for 55, which is significantly less than last year's result (91 companies). The leader in terms of market capitalization growth among the TOP-100 companies in the rating in 2017 was the development company Ingrad. The capitalization of this company has increased more than 8 times during the year. The second company in terms of growth rates was Lenenergo, whose capitalization increased 4.7 times, which is also mainly related to the additional issue. In general, the capitalization growth of 5 companies in 2017 was multiple, which in most cases was due to additional issues. For comparison, in 2016, 25 companies showed a multiple increase in capitalization, which was most often determined by the dynamics of shares.

The largest decrease in capitalization in 2017 among the companies included in the rating was demonstrated by the financial sector FG "Future". The companies with a significant decrease in market capitalization also included AFK Sistema, Magnit, Bashneft, VTB Bank, Nizhnekamskneftekhim, Lenta, Chelyabinsk Zinc Plant, Rusagro, Uralkali and Polyus.

RIA Rating is a universal rating agency of the media group MIA "Russia Today", specializing in assessing the socio-economic situation of the regions of the Russian Federation, the economic condition of companies, banks, industries, countries The main directions of the agency's activities are: creating ratings of regions of the Russian Federation, banks, enterprises, municipalities, insurance companies, securities, and other economic objects; comprehensive economic research in the financial, corporate and public sectors.

MIA "Russia Today" - an international media group, whose mission is to provide prompt, balanced and objective coverage of events in the world, informing the audience about different views on key events. RIA Rating as part of MIA "Russia Today" is included in the line information resources agencies that also include: RIA News , R-Sport , RIA Real Estate , Prime , Inosmi... MIA Rossiya Segodnya is the leader in terms of citation among the Russian media and is increasing the citation of its brands abroad. The agency also occupies a leading position in terms of citations in Russian in social networks and the blogosphere.

Having some money savings, each of us thinks about how to not only save this amount, but also make a profit. One of the most profitable options for investing money is a bank deposit.

This option of investing funds does not require the depositor's active participation in the fate of the deposit and involves receiving a good interest income. Such an option as capitalization will help to increase the profitability of the deposit.

This term is understood as the automatic addition of interest on the deposit to the principal amount at certain time intervals. In the future, interest is accrued from the increased amount.

Today it is not easy to choose a deposit program among dozens of bank offers, especially if a potential depositor does not have special knowledge in the financial sphere. In our article we will try to figure out how profitable the capitalization of the deposit is and when it is better not to choose this option.

What is capitalization?

The capitalization of the deposit is its periodic increase due to the addition of already accrued interest. Interest on capitalization can be added to the principal amount of the deposit once a year, quarterly, monthly, or even every day.

The more often this happens, the greater the benefit for the depositor. This is due to the fact that the next amount of interest will be accrued not from the "bare" amount of the deposit, but from the amount + the previous accrued interest.

Accordingly, each time, the amount of accrued interest increases in proportion to the increase in the amount in the bank account.

This deposit option allows the client to quickly accumulate money on the account, but usually does not imply the ability to withdraw interest or partially the principal amount of the deposit before the end date specified in the bank agreement. This is the main feature of deposits with capitalization - they are profitable when the depositor does not plan to withdraw funds in the near future.

Compound interest formula

Capitalization of deposits in banking is also called compound interest on the deposit. The formula for calculating compound interest looks like this:

• FV- future amount of the deposit;
• PV–The current amount of the deposit;
• R- interest rate on the deposit;
• n- the number of periods in which the investment is capitalized.

How to calculate interest on a deposit with capitalization?

To understand what capitalization of a deposit is and how interest is calculated, it is necessary to compare the conditions of a simple bank deposit and programs with capitalization.

A classic deposit assumes that interest on it will be charged at the end of the term for which it was issued. For example, if a depositor places 100,000 rubles at 10% for a year, at the end of the year he will receive 110,000 rubles. In this case, the net profit for the depositor will amount to 10,000 rubles. The calculation of the profitability of the deposit will be calculated by the formula:

100,000 + 100,000 x 0.1 = 110,000 rubles

If we assume that the depositor withdraws only interest, and leaves the principal amount on the deposit for three years, it is obvious that his profit will be 30,000 rubles.

If the deposit provides a capitalization option, the formula will contain an additional parameter - the number of capitalization periods. For the monthly capitalization of the deposit, this parameter will be equal to 12 (the number of months in a year). In this case, the profitability of the deposit for 3 years will be calculated according to the following formula:

100,000 x (1 + 0.1 / 12) 12 * 3 = 134,818.2 rubles

This means that the depositor's net profit on the same deposit with capitalization will be 34,818.2 rubles, which is obviously more than in the first option. As the amount of the deposit and the period for keeping funds on the deposit increase, the difference between the profitability of the classic deposit and the program with capitalization will also grow in favor of the second.

Types of capitalization of deposits

Depending on how often interest is added to the principal amount of the deposit, capitalization is divided into the following types:

• annual;
• quarterly;
• monthly;
• daily, etc.

Theoretically, capitalization can be hourly, every minute, and even every second. However, Russian banks today are not ready to offer even daily capitalization, due to the difficulties of servicing such a deposit. Most often, clients are offered annual, quarterly and monthly capitalization of interest.

Increasing contribution with annual capitalization

Let's give an illustrative example. Let's say the deposit amount is 30,000 rubles. The interest rate on the deposit is 8%. To calculate the amount of annual capitalization, we will use the formula:

Per year: 30,000 * (1.08) = 32,400 rubles

Accordingly, the net income will amount to 2,400 rubles. If we apply this formula to two and, accordingly, three years of annual capitalization, we get the following figures:

For two years: 30,000 * (1.08) (1.08) = 34,992 rubles

For three years: 30,000 * (1.08) (1.08) (1.08) = 37 791 rubles

Thus, using the scheme of annual capitalization, the profitability of a deposit in the amount of 30 thousand rubles at 8% will be 7 791 rubles.

Increasing contribution with quarterly capitalization

If we consider the same example for quarterly capitalization and use the formula presented above, it becomes obvious that the profit will be calculated as follows:

For the year: 30,000 * (1 + 0.08 / 3) 3 * 1 = 32,464 rubles

For two years: 30,000 * (1 + 0.08 / 3) 3 * 2 = 35,131 rubles

For three years: 30,000 * (1 + 0.08 / 3) 3 * 3 = 38,017 rubles

Obviously, quarterly capitalization is more profitable in comparison with the annual scheme of adding interest.

Increasing deposit with monthly capitalization

Now we will consider this example if the capitalization of the deposit will be made every month. A simple calculation will present the following indicators of the profitability of the deposit:

Per year: 30,000 * (1 + 0.08 / 12) 12 * 1 = 32,490 rubles

For two years: 30,000 * (1 + 0.08 / 12) 12 * 2 = 35,214 rubles

For three years: 30,000 * (1 + 0.08 / 12) 12 * 3 = 38,107 rubles

This option becomes even more beneficial for the bank's client. Accordingly, the more often capitalization occurs, the more profitable this deposit program option is for the client.

Continuous capitalization

Based on the fact that frequent capitalization is beneficial for the investor, experts have developed a formula for continuous capitalization. It allows you to calculate what is the maximum possible profit on a deposit with capitalization, if this process is carried out continuously. The formula looks like this:

• FV- future amount of the deposit;
• PV- today's deposit amount;
• e= 2.7183 (exponent);
• r- the nominal interest rate;
• n- number of years.

If we substitute into this formula the parameters of our example, where the amount of the initial deposit is 30,000 rubles, and the annual percentage is set at 8%, we get the following profitability of a deposit with continuous capitalization:

30,000 * 2.7183 0.08 * 3 = 30,000 * 2.7183 * 0.24 = 38,137 rubles

This formula demonstrates that continuous capitalization is the most profitable option for an investor. It is not yet possible to find such offers in Russian banks, but most likely, in the future, this formula can also be used in the formation of new deposit programs.

What is the effective interest rate?

The effective interest rate is an indicator that is calculated for deposits with capitalization in order to compare them with the conditions of classic deposit programs.

So, for example, the interest rate on a deposit without capitalization in our example is 8%. If we are considering the option with monthly capitalization, it was previously calculated that 32,490 rubles will be accumulated on the account over the year.

To calculate the effective interest rate, we divide this indicator by the principal amount of the deposit:

30 000/ 32 490 = 1,083

Accordingly, the effective interest rate on deposits with monthly capitalization will be 8.3%, which is obviously higher than the 8% offered for a standard deposit. When calculating, it should be understood that due to the capitalization of the deposit, the effective rate is always higher than the nominal one.

Top offers from leading Russian banks

Choosing the most profitable deposit program, the depositor should pay attention to the tricks of the banks. So, more profitable deposits with capitalization usually have a lower percentage.

For example, if a regular deposit is offered by a bank at 10.5% per annum, and a deposit with capitalization at 10%, the benefit from the capitalization option is nullified.

In a year, the client will receive the same amounts on both deposits, but the usual deposit program will allow him to regularly withdraw interest and withdraw funds, while a deposit with capitalization usually does not provide for such opportunities.

Leading Russian banks in 2019 offer the following conditions for deposits with capitalization:

• Sberbank... This bank offers a huge variety of deposit programs. The minimum deposit in Sberbank is only 1,000 rubles, and the term starts from six months. The interest rate for deposits with capitalization is relatively low - up to 8.1%.
• Summer Bank... The "Capital" deposit is considered a very profitable program with monthly capitalization in Leto Bank. The amount of such a deposit is in the range of 5,000–1,500,000 rubles, and the rate ranges from 9.7 to 10.36%.
• Alfa Bank... The most demanded deposits of Alfa-Bank were the deposits "Pobeda" and "Line of Life". These programs provide monthly capitalization and offer interest rates of 10.25% and 9.8%, respectively. The maximum term for placing funds under such deposit programs is 3 years.
• Home Credit Bank... This bank offers three profitable programs with monthly capitalization - "Profitable year", "Maximum income", "Pension". Interest on such deposits ranges from 8% to 8.75% per annum, and the maximum term for placing money reaches three years. Home Credit Bank also offers the "Capital" deposit, in which the regularity of interest accrual is determined by the depositor himself.
• UniCredit Bank... This bank offers two profitable products with monthly capitalization - “For Friends” (only new clients of the bank can open) and PRIME (for holders of a premium package of services). Interest rates range from 6.50-9.00%. The advantages of this bank are that for many years in a row it has been in the TOP-10 according to the reliability criterion according to the Central Bank of the Russian Federation.

Deposits with interest capitalization are not uncommon in the modern Russian market of banking services. Choosing such a deposit, the client must understand that it will be possible to feel all its advantages only if cash he won't need it anytime soon.

Apple or Google: which company will be the first to be valued at $ 1 trillion

Apple: at home

Apple is the closest to the coveted trillion mark, whose capitalization as of February 6 is estimated at more than $ 821 billion. The company reported an absolute revenue record of $ 88.3 billion in the December quarter - 13% higher than last year and more than $ 20 billion net profit, which is 12% more than the result of 2016 and above analysts' forecasts.

Apple previously said it would pay $ 38 billion in taxes on overseas assets. However, the payment will be due for the current year, and therefore it did not affect the profit for the quarter. At the same time, the company's cash volume reached a record $ 285 billion.

The key issue for the report for the quarter ended December 30 was iPhone sales dynamics. In early November 2017, the iPhone X entered the market, and Apple's risky bet on a flagship smartphone with a price of $ 1000 or more could play both for and against the company.

The results were predictable: Apple sold 1% fewer devices than in the same period in 2016, but iPhone revenues were 13% higher thanks to a higher average price.

According to Apple CEO Tim Cook, the iPhone X has been the company's best-selling smartphone since it launched in November. IPad sales rose 6%, but Mac revenue declined 5%.

The total number of activated devices of the company has exceeded 1.3 billion.

Active growth - by 13% - was again observed in sales of services ( App Store, Apple Music, Apple Pay, etc.). In "other products", to which the company refers to the Apple Watch, revenue increased by 36%. In the same segment, Apple will report on sales of the Homepod smart speaker, which it will launch on the market in February.

However, the company's conservative outlook for the current quarter disappointed investors. Revenue expectations of $ 60 billion to $ 62 billion were below market expectations of $ 65.44 billion. Against this background, the company's shares are trading around the level of $ 160 per share - at the level of mid-October. If this trend continues for the entire quarter, it will slow down the implementation of Apple's trillion-dollar ambitions.

Google: catching up

Apple's closest pursuer is its main competitor in the mobile market - Alphabet (Google's parent company). The company, with a current capitalization of $ 736.7 billion, has experienced less stock volatility than Apple for the past five years. However, Q4 2017 results hit Alphabet stocks - and here's why.

The company reported revenue growth of 24% over the same period last year to $ 32.3 billion, higher than market forecasts. But under the influence of the new tax law, the company lost about $ 9.9 billion in net profit. As a result, Alphabet had a quarterly net loss of more than $ 3 billion.

Immediately after the announcement, Class A shares lost about 4% in value and continue to decline. Not only did lower-than-expected operating profit results, but also the size of investments in. The company also disclosed revenue for its cloud services for the first time - Google Cloud and G-Suite generated $ 1 billion in the quarter, which is five times lower than, for example, the results of AWS from Amazon.

At the same time, Google's growing ad revenues (plus 21.5% QoQ), dominance in the search market and long-term investment in innovative projects, including self-driving cars, keep the company on the list of top contenders for a trillion dollar market cap.

Microsoft: quietly

Amid flamboyant announcements and statements from other tech giants, Microsoft remained slightly in the shadows in 2017. However, under the leadership of Satya Nadella, the company managed to build a strong b2b vertical and increase its share price by more than 46% in a year. Now the company's capitalization is estimated at $ 691.9 billion - for a trillion, you need to repeat the result.

In October-December 2017, the company reported revenue of $ 28.9 billion, almost 12 billion more than a year earlier and higher than market forecasts. However, the net loss amounted to $ 6.3 billion due to tax payments of $ 13.8 billion. Excluding the tax burden, operating profit grew by 10%.

The largest segment - consumer products - grew by only 2% to $ 12.2 billion. The largest growth was recorded in the gaming business - thanks to the Xbox One X, the company increased its income by 8%.

In the segment of solutions for productive work, where Office and LinkedIn are the flagship, revenue grew 25% to $ 9 billion.

Cloud solutions brought the company $ 7.8 billion - 15% more than in the previous year.

Microsoft will have to overcome its "persecutor" image on the road to the trillion. During the conference call, questions arose about how the company intends to compete with Sony Playstation in the number of exclusive games available, and with Amazon Alexa in the popularity of its Cortana service.

Amazon: Breakthrough of the Year

If you look at how companies got started in 2018, Amazon is still leading. Over the past month, the company's shares have added almost 17%, and the capitalization of $ 683.8 billion has come close to Microsoft. If the company manages to maintain momentum until the end of the year, then it has every chance of becoming a leader.

For the fourth quarter of 2017, Amazon reported a 38% increase in revenue to $ 60.5 billion. Unlike Google and Microsoft, Amazon also reported net profit for the quarter of $ 1.86 billion - 2.5 times higher than last year's result.

Of course, unlike the “colleagues”, the specifics of Amazon's business, like other online retailers, implies super-successful sales.

However, in addition to "exceeding expectations" (according to the company) sales of smart speakers with Amazon Alexa, the big jump in revenue was shown by the cloud services division Amazon Web Services.

Revenue in this segment grew from $ 3.5 billion in the December quarter of 2016 to $ 5.1 billion in 2017.

Amazon calls the negative impact of the new taxation on its business "negligible." At the same time, the company included in the financial report for the quarter $ 789 million, which it won by reducing the federal corporate tax rate. In addition, about 62% of Amazon's sales come from the US, compared to 65% overseas for Apple.

: on the halfway

Finally, the most implicit contender for the trillion among tech companies is. The company's current capitalization of $ 528.9 billion needs to be practically doubled.

Is it possible? In the quarterly results, it reported a 47% increase in revenue to $ 12.97 billion, and a 20% increase in net profit to 4.27 billion.

The company noted that due to the new tax, it had to pay an additional $ 2.27 billion in taxes in 2017, which affected the results of both the quarter and the whole year.

Despite the end of the quarter in positive territory, it unpleasantly surprised investors. The time that users spend on social networks every day has decreased by 5% or 50 million hours: affected new policy regarding viral videos. In addition, it lost some of its users in the US and Canada.

On the positive side, there is a 43% rise in ad rates and the fact that 89% of ad revenue is generated from mobile. As a reserve, we have subdivisions with minimal monetization: WhatsApp, Oculus, Instagram. And the head of the company, Mark Zuckerberg, previously promised to look towards cryptocurrencies, although he has not announced any specific plans yet.

Of course, it's not just tech companies that are in the race for the trillion. However, their leadership in the list of the most valuable companies and sharp ups and downs in this particular segment make it so exciting to watch.

Cryptocurrency market capitalization and new opportunities

In the article "Changes in the exchange rate of cryptocurrencies: reasons and factors" we have already considered the general reasons for fluctuations in the rate of bitcoin and rates of other cryptocurrencies (altcoins), for example, LTC and ETH.

Now, having studied the events of 2017, we will take an interest in what trends have particularly strongly determined their courses in practice.

Having dealt in more detail with the events that contributed to the success of cryptocurrencies in 2017, we will analyze what additional factors can contribute to the growth of prices for cryptocurrencies in the current year.

On December 13, 2017, the capitalization of the cryptocurrency market crossed the historical mark of $ 500 billion, and at the beginning of 2018 this indicator of the market volume continued to grow and exceeded $ 700 billion. At the time of this writing, there was a correction, market trends are clearly visible on the charts below.

The total cryptocurrency market capitalization and its changes in the period from January 2017 to January 2018 are shown in Chart 1.

Reasons for the growth in cryptocurrency market capitalization in 2017

The total capitalization of all cryptocurrencies more than tripled from mid-October to mid-December 2017. A significant rise in prices for cryptocurrencies was predicted in advance, and it is not difficult to identify its reasons after the fact. According to experts, many of these reasons will remain relevant in 2018.

Growth of general interest in cryptocurrencies

Indeed, a general increase in interest in bitcoin, an increase in confidence in it on the part of large investors not only quite naturally led to an increase in the rate of BTC itself; it also improved the position of other dominant cryptocurrencies. We can say that in terms of reputation, bitcoin, as the dominant cryptocurrency, pulled other altcoins along with it, thus increasing their rate and contributing to the growth of capitalization.

Involvement in the cryptocurrency market of large corporations

Direct improvement of the business climate, including around the most promising altcoins, has been and continues to be important for the popularization of cryptocurrencies. Thus, the news of the establishment of partnerships between Microsoft and the Ethereum Foundation led to an immediate increase in the quotes of the ETH cryptocurrency.

Increasing the role of cryptocurrencies in various sectors of the economy

Improving the software mechanisms of bitcoin and, especially, altcoins, endowing them with new functions and expanding their role in the banking sector and other sectors of the economy - all these factors also contributed to the rise in price of cryptocurrencies and further growth in demand for them. So, the successful introduction of the SegWit update on Litecoin in the spring of 2017 led to an increase in the price of this asset by 6-7 times only in the spring months (the rate growth continued later).

Growing confidence in cryptocurrencies and the possibilities of using blockchain technology

Blockchain technology, which is the basis of cryptocurrencies and, first of all, bitcoin, is becoming more widespread in the world. The possibilities of using this technology in practice are expanding; its uniqueness and importance for the development of the IT sphere have been recognized at the state level in many countries.

Thanks to this, blockchain technology began to be used in 2017 in government and international projects. The "technology of the future," as blockchain is often called, will be the foundation for global business, according to many analysts.

Such trends, of course, also increase the level of trust in cryptocurrencies, which have become a vivid example of the implementation of blockchain technology in practice.

Entry of cryptocurrencies to traditional exchanges

The increase in the "legality" of cryptocurrencies, increased trust in them from regulators and the entry of Bitcoin on traditional exchanges also contributed to the strengthening of the position of altcoins.

You can read about what a futures contract is and why exactly it became the basis for BTC to enter the world stock markets in the article "Bitcoin Futures: What is the Essence?" From EXMO experts. The advantages and disadvantages of bitcoin futures can be found in the material "Bitcoin Futures: Features and Prospects".

The entry of large investors into the market and speculative influences

In 2017, large investors showed great interest in the purchase of cryptocurrency, which stimulated the growth of the rates of the most popular coins, primarily bitcoin. The speculative component of price growth also took place in the past year - it was signaled by periods of especially rapid growth in prices for many cryptocurrencies.

Depending on the behavior of large players on cryptocurrency exchanges and a number of other factors, the rates of leading cryptocurrencies may stabilize in the foreseeable future (possibly with a "correction").

Of course, too rapid and non-stop growth, such as the one we recently observed, strengthens the speculative components of cryptocurrency prices, threatening cryptocurrency rates not only with a serious recession in the final of the growth segment, but also, possibly, with a prolonged price depression following it.

Prospects and opportunities of the cryptocurrency market

The growing market provides favorable prospects for both experienced traders and those new to cryptocurrency.

Bull traders (that is, buying an asset during price downturns and selling during highs) see the advantages of a rising market in the fact that when entering the market at the wrong point (when the purchase of an asset is followed by a local decline in price, instead of the expected growth), there is enough high chances of waiting for recovery and price growth within a reasonable time frame.

For novice traders who are just getting acquainted with cryptocurrency, the growing market is good because the acquaintance with cryptocurrency takes place in an atmosphere of price optimism, which provides beginners with a well-known psychological stability.

It is important to understand that growth cannot be endless, so you need to assess the market situation calmly and carefully. This is one of the main rules for working in the cryptocurrency market.

Read about what mistakes should not be made in trading in the article “10 mistakes of a trader. How to avoid them? "

Of course, along with the possibility of the emergence of "corrective" trends, one can expect the development of favorable trends in the market. According to some forecasts, 2018 could be the “year of altcoins”, providing them with opportunities for growth.

The trends in the altcoin market are well illustrated by Chart 2. Here you can see changes in the total capitalization of the altcoin market, i.e. all cryptocurrencies except BTC between January 2017 and January 2018.

Market trends could not but affect the development of the EXMO cryptocurrency platform. The exchange team summed up the results last year... So, in 2017, more than 1,000,000 users were registered on the platform, and the number of active traders per day exceeded 100,000. The number of currency pairs available on the platform was also increased in 2017 from 13 to 46.

Event horizon: how the cryptocurrency market grew in 2017

So 2017 has come to an end, which undoubtedly turned out to be one of the most successful for the entire cryptoindustry. It turned out to be extremely eventful: many cryptocurrencies grew exponentially, there was a real boom in ICOs, and on the Internet people began to be interested in bitcoin much more than Justin Bieber and even Donald Trump.

It's time to take stock and find out which coins grew the most dynamically, how much the market as a whole has grown, how things are with bitcoin volatility, and what forecasts are given by experts for the next year.

Market capitalization

The question of the economic meaning of the concept of "capitalization" is one of the most controversial. On the one hand, the capitalization of a cryptocurrency is the product of its supply by the current weighted average price of the coin. On the other hand, each digital asset has its own volume of emission and its own monetary policy, and therefore comparing some coins with others in terms of capitalization is a rather controversial undertaking.

Nevertheless, in our opinion, it is possible and even necessary to analyze the dynamics of the cryptocurrency market capitalization as a whole. So, some coins appear, while others disappear without a trace or fall in price to indecently low values. However, the aggregate value of the market as a whole is growing, and this must be reckoned with.

At the very least, this means that more and more people are interested in cryptocurrencies and enter this market, increasing its capitalization. The price depends on demand, which means that if there was no widespread interest in cryptocurrencies, then the capitalization of digital assets would not have grown so dynamically.

In 2017, like mushrooms after the rain, new cryptocurrency hedge funds appeared. Largely thanks to futures on the CME and CBOE exchanges, even the most "hardened" giants such as Goldman Sachs and JPMorgan began to pay attention to Bitcoin.

Those who used to "throw mud at bitcoin" now reckon with it and no longer scatter stereotyped phrases about "financial pyramids" and "lack of support", do not perceive cryptocurrency only as a "tool for laundering criminal proceeds."

So, if on the first day of 2017 the total cryptocurrency market capitalization was only $ 17.7 billion, then by December 29 this figure reached $ 592 billion.

Data: Coinmarketcap

Thus, the market grew by about 33 times over the year. This suggests that a well-diversified and balanced portfolio of cryptocurrencies formed at the beginning of the year would bring good profit to its owner.

This year, the price of the first cryptocurrency also grew rapidly. A natural question arises: which is more profitable - holding bitcoin or investing in a portfolio of carefully selected cryptocurrencies?

How did Bitcoin grow in 2017?

For digital gold, this year was perhaps one of the most successful. The development of infrastructure, the interest of institutional investors and the general public, the implementation of SegWit and the legalization of bitcoin in Japan are just some of the main factors in the growth of the price of the first cryptocurrency.

If on the first day of the outgoing year, for the first time since 2013, bitcoin crossed the $ 1000 mark, then by mid-December it was actively testing the $ 20,000 mark. At the time of writing (12/29/2017), digital gold is trading around $ 14,500 ( exchange Bitfinex).

Data: Coinmarketcap

The graph below illustrates how much bitcoin has grown in percentage terms over the past six months, a year, two years, and five years:

Data: CoinDance

Thus, tightly constrained supply and exponentially growing demand work wonders.

If we compare the growth dynamics of the market as a whole and the price of bitcoin, then in percentage terms the indicators will be quite comparable. Therefore, in a portfolio balanced in terms of risk / reward ratio, a significant share may well be allocated to bitcoin.

The thesis that among all cryptocurrencies, bitcoin has the highest Sharpe ratio, is confirmed in the infographic taken from the site woobull.com:

Many well-known economists and old-timers of the financial market scold Bitcoin for its high volatility. However, after examining the following chart, we can conclude that over time, the average swing in the price of bitcoin decreases:

Bitcoin is now much more liquid than before, and its volatility does not greatly exceed many exchange commodities and popular fiat currencies.

Now fewer and fewer people doubt that the first cryptocurrency is an attractive investment object. On the other hand, a crypto enthusiast is not alone alive. Many will be interested to know how the most liquid altcoins grew in 2017, in order to then, probably, include them in their crypto portfolio.

Record-breaking growth among altcoins

According to the blocklink.info service, the absolute record-breaking price growth is the cryptocurrency Ripple (XRP), which has grown by more than 24,000% over the year (the last column of the table):

Data as of 29.12.2017

It can also be seen from the data in the table that the cryptocurrencies DASH, Ethereum and Litecoin have grown significantly (albeit with a large lag behind XRP) in 2017. These digital assets can already be considered "old-timers" of the market, because they are traditional regulars at the top of the Coinmarketcap rating.

It is also worth noting an interesting detail - the cryptocurrency market as a whole (indicated in the table as "CryptoCurrencies") grew more actively than bitcoin (3092% versus 1397%). Monero and Ethereum Classic also showed very good dynamics in 2017.

Among other things, the data of the Blocklink service confirms that currently investing in cryptocurrency is many times more profitable than investing in the shares of the largest companies, including Alibaba, PayPal, Amazon, etc.

Of the “recent discoveries” on the market, one can single out the Verge (XVG) cryptocurrency. Back in early December, the price of one XVG coin did not exceed $ 0.006, and today the weighted average rate by exchanges is $ 0.16.

Is it too late to enter this market now?

Many experts believe that the limit for the growth of Bitcoin and other liquid cryptocurrencies is still far away. In particular, Tom Lee, an analyst at Fundstrat Global Advisors, is confident in the long-term prospects for market growth. His fund regularly buys bitcoins on price pullbacks, while Lee himself predicts a retest of the $ 20,000 level in mid-2018.

A less conservative forecast for Bitcoin comes from investor and billionaire Mike Novogratz. He is confident that by the end of next year, "digital gold" will cost $ 40 thousand. According to the investor, the Ethereum cryptocurrency may grow approximately three times more.

The long-term forecast of the head of Standpoint Research Ronnie Moas is interesting. He believes that due to "a breathtaking imbalance of supply and demand", bitcoin could skyrocket to levels in the region of 400 thousand dollars.

Moas compares bitcoin to Amazon stock, which for the past 15 years should have been “held” and bought “at the bottom”.

In August, he suggested that the cumulative capitalization could rise to $ 2 trillion in ten years.

Convinced that the current price of bitcoin has not reached the limit, owner of the Golden State Warriors basketball club and founder of the venture capital firm Social Capital Partnership Chamat Palihapitiya. In three or four years, he believes, Bitcoin will be bought for $ 100,000, and in 20 years it could be worth a million dollars. At one time, Palihapitiya bought bitcoin for $ 100.

Bitcoin billionaires, the Winklevoss brothers, are completely confident that BTC can grow twenty times more and even replace gold. Despite the multiple growth since the beginning of the year, the twins believe that bitcoin is only at the beginning of a "long journey".

A very bullish outlook for the cryptocurrency market is given by Breadwallet co-founder Aaron Lasher. He believes that in ten years, the capitalization of Bitcoin alone will reach five trillion dollars. At the same time, he urges crypto investors not to lose vigilance, since along with bulls, there are always bears that can exert tough pressure on the market.

Also, according to Lasher, cryptocurrencies can serve as useful portfolio diversification tools, hedging instruments and / or assets with high growth potential and associated risks. It all depends on the financial goals of the investor.

Among the experts there are always pessimists who can often pass themselves off as "realists." So, in early December, Saxo Bank published its traditional list of provocative and shocking forecasts for 2018.

It notes that at a certain point in 2018, the price of bitcoin will exceed $ 60,000. However, analysts are sure that soon, some countries will "knock out the ground from under bitcoin's feet."

As a result, by the beginning of 2019, "digital gold" will fall in price to $ 1000.

Unlike Saxo Bank, the Blocktower Capital cryptocurrency fund appears to be much more optimistic. A vivid confirmation of this thesis can be considered the purchase by the fund of a call option for 275 bitcoins at $ 50 thousand dollars at the end of December 2018. The option premium paid was $ 1 million.

Perhaps, many people also remember the forecast of the eloquent crypto enthusiast and CEO of MGT Capital Investments John McAfee. In July, he promised to "eat his penis on TV" if the price of bitcoin did not reach the $ 500,000 mark in three years.

After just a few months, McAfee upped the ante, admitting that digital gold would be worth a million dollars in 2020. Thus, the creator of the antivirus McAfee proved to be a convinced and courageous bitcoin maximalist, who considers the first cryptocurrency to be the best long-term investment.

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History of Gazprom's capitalization: dynamics by years

PJSC Gazprom is one of the largest energy companies in the world, engaged in the full cycle of exploitation of natural resources: exploration, production, transportation, processing, storage and sale. The organization is interested in two types of fuel:

• Oil (included in the TOP-3 oil producing enterprises in Russia);
• Natural gas and gas condensate (the concern owns 17% of the world's gas reserves and 72% of Russian reserves).

In the future, the above indicators are likely to increase, since at the moment there is an active development of gas fields in many regions of Russia and in other countries of the world.

The company also develops alternative energy sources, however, this direction is of a secondary nature and is at the mercy of Gazprom's subsidiaries.

Maintenance of such facilities would have been impossible without an extensive network of gas trunklines with a total length of more than 170 thousand kilometers.

Until 2013, the organization remained the only gas exporter from the Russian Federation, however, to date, this kind of monopoly has remained only with respect to pipeline gas.

In addition to the energy sector, the concern has many subsidiaries and controlled companies, the most famous of which are Gazprombank and Gazpromneft.

Equity history

Gazprom was founded in 1990 by transforming the USSR Gas Industry Ministry into a single state enterprise. The concern was headed by Viktor Chernomyrdin, who, in fact, retained his previous post (before that he headed the above-mentioned ministry).

The collapse of the Soviet Union that followed had a negative impact on the company, since the collapse of the USSR meant the loss of property (pipelines, processing stations, sources of raw materials), which was located in the territories of the other Soviet republics.

Nevertheless, despite financial difficulties, until the end of August 1992 Gazprom was fully owned by the state.

On November 5, 1992, the company was transformed into Joint-Stock Company, and in April 1994, along with market reforms in the Russian Federation, privatization began. According to the organization's charter, foreign citizens in total could have no more than 9% of the shares.

The bulk of the shares were sold in 1998-2000, when Gazprom was asked to pay billions of dollars in tax arrears. By 2004, only 38.7% of the shares remained in the hands of the state.

In the course of a number of transactions, this figure increased to 50.01%, and in December 2005 the State Duma passed a law establishing the minimum state share at 50% plus one share, foreign holders were allowed to own 20% of the company's shares (this restriction was later removed).

As of December 1, 2017, 50.23% of the shares are controlled by the Russian Federation (owned directly or by state corporations), 26.86% are held by the owners of ADRs (American Depositary Receipts), 22.91% are the property of other registered persons. Securities organizations are traded on various exchanges (Moscow Exchange, London Stock Exchange, etc.).

Dynamics by years

Gazprom's capitalization by years, in billions of dollars:

The growth of indicators on the chart in 1997-98 was mainly due to tax breaks and state patronage, which the company received thanks to the appointment of Viktor Chernomyrdin to the post of chairman of the Russian government. His resignation in 1998, as well as the economic crisis, had a serious impact on the group's quotes.

The growth that followed continued until May 2008, when capitalization rose to $ 364.8 billion. Around the same time, the chairman of the board of Gazprom, Alexei Miller, said that in 7-8 years capitalization should grow to 1 trillion. However, a number of factors (economic crisis, falling demand for energy resources, image scandals, etc.)

) led to a sharp decline and depreciation of the holding.

In view of the fact that the dependence of European consumers on Russian gas has not gone anywhere, the company is gradually recovering its position. But the growth in value was modest and at a new peak in the spring of 2011 the concern is far from pre-crisis indicators.

Then there was a steady decline again, and in 2014 there was a sharp collapse of quotations due to the conflict in Ukraine. Having previously imported large volumes of gas, Kiev has sharply reduced the level of consumption of Russian energy resources.

The company was also hit by the imposition of sanctions, since Gazprom, in addition to pursuing its commercial interests, is also an instrument of foreign economic and foreign policy influence of the Russian Federation.

Gazprom capitalization today

At the beginning of December 2017, the Russian "national treasure" was estimated at about $ 53.5 billion. In comparison with the optimistic forecasts of “capitalization of 1 trillion”, the result is more than modest. However, it is not worth burying the gas giant prematurely - such low numbers are a standard story for Russian companies, many of which are significantly underestimated.

For example, Apple is estimated 18 times more expensive than Gazprom, but at the same time its EBITDA (pre-tax profit) is only 1.5 times less. That is, the American corporation, earning not much more, has simply prohibitive value in comparison with the Russian concern.

In addition, Gazprom has at its disposal $ 10 trillion of undeveloped reserves (and this is only confirmed), the company's shares have a good dividend yield (6.5% versus 3.5% for foreign peers), and the return on capital is much higher than average. in the industry (5.9% versus 3%). There is a clear underestimation of the Russian company due to a number of reasons:

• Unattractive investment climate;
• Unstable national currency (Russian ruble);
• Low efficiency of Gazprom's investment activities.

Against the background of all of the above, talk about the possible bankruptcy of the gas concern is mostly groundless. Even taking into account the multi-billion dollar investments in new projects and not the most far-sighted pricing policy in the near future, the company does not threaten any financial shocks.

In the event that one day Gazprom still goes bankrupt, it is natural that this will result in negative consequences for many citizens of the country. Today the corporation provides 400 thousand jobs and provides gas to almost all the population and enterprises of the Russian Federation. Consequently, a large number of people will be left without work, and gas prices will skyrocket.

It is also worth noting that the state budget of the Russian Federation is significantly tied at the work of the concern (the company's income provided 8% of the country's GDP). Therefore, bankruptcy would seriously affect the general welfare of the state and the stability of the economy as a whole.

Analyst forecasts

Experts suggest that Gazprom's market capitalization is unlikely to increase significantly in the coming years, as the company simply does not have the right resources and leverage.

As mentioned above, there is a serious underestimation of Gazprom on the market, however, given the current foreign policy situation, the situation in this area will not improve in the near future.

Factors scaring off potential investors (government interference in the activities of the gas corporation, economic sanctions, political problems) will remain relevant for a long time, and therefore there is no need to expect much progress.

This will require a significant qualitative breakthrough in innovation and technology. It will not be possible to achieve imaginary growth, as, for example, in the situation with Apple, since Gazprom represents the real sector of the economy.

In fact, even in incredible scenarios (for example, if the dollar depreciates several times and the attractiveness of energy resources from the Russian Federation further increases), a strong growth of the “national treasure” shares is unlikely. After all, such shocks, as a rule, affect the entire world economy, significantly reducing the overall demand for energy resources.

Nevertheless, many analysts are confident that a slight increase in quotations for Gazprom shares is still quite possible. The reason for this should be the previously mentioned underestimation of the company, as well as the planned increase in export prices in the European direction.

Gazprom projects

In 2017, the gas giant actively invested in future projects. Conventionally, they should be divided into two groups: the development of new fields and the construction of gas pipelines. The first category includes the following programs:

• Megaproject Yamal is the construction of a gas production center on the Yamal Peninsula, which in the future will become the main source of energy resources in Russia. Already 67.5 billion cubic meters are being produced there. m. of gas. In the future, it is planned to bring this figure to 360 billion cubic meters. meters of gas per year.
• Eastern Gas Program - state project to create in the east of the country unified system extraction, processing and transportation of gas. At the moment, work is underway to launch four gas production centers: the Kovykta and Chayandinskoye fields, Kamchatka and Sakhalin-3.
• LNG projects involve the construction of liquefied natural gas plants in the regions (Sakhalin-2, Vladivostok-LNG, Baltic LNG, Kaliningrad-LNG).

To transport huge volumes of gas to be supplied by the fields listed above, Gazprom is building three large gas pipelines at once:

• "Power of Siberia" - modern system transportation in the east of Russia, the planned length of which is 3000 km. Part of the pipeline sections will run along hard-to-reach natural routes (permafrost, mountain ranges, swampy and seismically active areas).
• Nord Stream 2 is an export gas pipeline from Russia to Europe, passing through the Baltic Sea. It will increase the volume of Russian gas supplies abroad. The length of the new route is 1200 km.
• Turkish Stream is a gas pipeline from Russia to Turkey, passing through the Black Sea.

  the goal of the project is to expand gas export channels to Turkey and southern Europe.

Based on the foregoing, it can be concluded that any significant changes in the capitalization of Gazprom in the direction of growth or decline are unlikely. The company's weak investment attractiveness and a number of foreign policy factors hinder the rise in the company's value. At the same time, the corporation itself has never carried out deliberate actions to increase capitalization.

On the other hand, the demand for Russian gas from Europe will not go anywhere for many more years (there is simply no alternative yet), and all emerging conflicts have little effect on the volume of supplies. Therefore, there is no reason to seriously talk about a decrease in Gazprom's quotations, and even more so about bankruptcy.

Moscow, January 31 - “Vesti. Economy". The total market capitalization of the 100 most expensive Russian public companies at the end of 2017 increased by 1.3% to $ 643 billion.

Below are the ten most expensive Russian companies.

The leading position in the rating is now occupied by Sberbank, whose capitalization over the past year has grown by almost 40% to $ 84 billion. The share of market capitalization attributable to companies in the financial sector rose to 16.9% over the year against 15.8% in the previous rating, and their market value approached $ 110 billion.

According to the results of the past year, the long-term leader - "Gazprom" with a capitalization of $ 53.35 billion is on the second line. The capitalization of Gazprom fell by 11%, but this still allowed it to slightly (by only $ 45 million) overtake Rosneft.

3. Rosneft

Rosneft, which in 2016 removed its long-term leader, Gazprom, from the pedestal, could not stay in first place in 2017 and took the third line by the end of the past year. This is due to the decrease in the capitalization of Rosneft by 24% over the year, to $ 53.3 billion.

Among the 100 most valuable companies, market capitalization in 2017 increased for 55, which is significantly less than last year's result (91 companies). In general, the capitalization growth of five companies in 2017 was multiple, which in most cases was due to additional issues. For comparison, in 2016, 25 companies showed a multiple increase in capitalization, which was most often determined by the dynamics of shares.

The minimum market capitalization required to enter the top 10, on the contrary, became less during the year - $ 15.3 billion versus $ 15.9 billion a year earlier.

According to RIA Rating experts, in 2018, the growth of quotations for most companies, which began in mid-2017, is likely to continue. At the same time, for many of them the effect of a low base has already been exhausted and growth should not be very strong.

As before, the largest contribution to the total value of the most expensive companies in 2017 was made by corporations associated with oil and gas production and oil refining. They account for 39.9% of the total capitalization of the Top 100 most expensive companies in Russia, which is 4.2 percentage points less than a year earlier. The decrease in the share is due to the negative dynamics of the value of a number of the largest companies from this sector.

The number of the ten largest companies in terms of capitalization in Russia, the retailer "Magnit" and VTB, have left. VTB moved from tenth place at the end of 2016 to 14th place at the beginning of 2018, which is due to a decrease in capitalization by 33%. Over the past year, the capitalization of the Magnit retail chain has decreased even more - by 39%, or by $ 6.6 billion, which led to the loss of eight places in the rating, and now this company is in 16th place.

Metallurgy became the third industry in terms of total capitalization. Steel companies account for 13.9% of the market value of the largest Russian companies in terms of capitalization. On the whole, 2017 can be called the “year of metallurgists”, since, following the prices of steel and coal, the quotes of their shares showed rapid positive dynamics.