Gazprom to become largest stock in MSCI Emerging Markets Index
Gazprom will surpass Samsung Electronics Co., the world's second-largest semiconductor maker, as the biggest component in the emerging-market index. Samsung, based in Suwon, South Korea, accounts for 3.9% of its value, according to MSCI. Created out of the Soviet gas ministry in 1991, Gazprom holds 16% of the world's known gas reserves. Its output of 547.2 billion cubic meters last year is equivalent to 9.42 million barrels of oil a day, about as much as the daily output of Saudi Arabia, the world's biggest crude oil supplier. The higher weighting will raise Russia's representation in MSCI's index to 11.1%, making it the third-largest emerging market worldwide, according to MSCI. Russia, which is currently No. 6, will trail only South Korea and Taiwan. „We expect the reweighting to support both the Russian market in general and Gazprom specifically in coming weeks,” Andrew Howell and Geoffrey Dennis, strategists at Citigroup in New York, wrote in an Aug. 11 report. „Many emerging markets investors are underweight and will likely be forced to raise exposure over time.” (Bloomberg)
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