Gazprom now world's fourth-biggest company

A sharp rise in the value of shares in the Russian energy giant Gazprom propelled it into fourth place in the list of the world's biggest companies measured by their market capitalisation.

Shares rose by 8.27 per cent, to more than 11 dollars, the Moscow Stock Exchange said, valuing Gazprom at 266 billion dollars (205 billion euros).

The rise took Gazprom, which is 51 percent state owned, past British oil company BP and US banking firm Citibank.

Only the US oil giant ExxonMobil (market capitalisation 391.7 billion dollars), General Electric (355 billion dollars) and US software firm Microsoft (280 billion) are larger.

Analysts said the rise in the share price was the result of the decision by MSCI, or Morgan Stanley Capital International, to increase sixfold the weighting given to Gazprom in its Emerging Markets index.

The weighting was increased from 0.4 percent to 2.5 percent following the removal of restrictions that prevented foreign investors owning shares in Gazprom.

Fund managers keep a close eye on the index, which concentrates on businesses in emerging countries, and flocked to buy Gazprom shares, analysts said.

Gazprom shares are also benefiting from rising oil and gas prices worldwide and the euphoria that has swept the Moscow stock market in recent months.

Russia's RTS index of leading shares has leapt by almost 50 percent since the beginning of the year, largely thanks to Gazprom.

In December, Russian President Vladimir Putin signed decrees opening up the market in Gazprom shares to non-residents wanting to increase their holdings in the company.

Gazprom is the world's biggest oil and gas producer and exporter. A recent takeover of the fifth-largest Russian oil group Sibneft means it accounts for seven percent of Russian Gross Domestic Product and eight percent of budget income.

The company is estimated to control about a third of total world natural gas reserves and has a monopoly on gas exports from Russia and the Russian pipeline network.

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