How do I buy Gazprom shares from home?
How do I buy Gazprom shares from home?
The shares of energy companies are in constant demand on Russian and world stock exchanges. The largest of these companies is Gazprom. It is the monopolist of the Russian natural gas market and the largest supplier of natural gas to the European market. Gas from Russia is supplied to 30 countries of the world. OAO Gazprom is an integrated corporation engaged in the development of new gas fields, construction of gas pipelines, production, transportation and sale of gas. The Company owns the majority of natural gas fields, occupies 78% of the Russian gas market and accounts for 15% of global sales.
Gazprom owns 72% of all Russian gas reserves in Siberia, the Far East and the Arctic shelf. The Company is constantly developing its gas transportation infrastructure. In addition to transit through Ukraine and Belarus, the southern and northern directions are being developed. The gas transmission infrastructure for direct gas supplies to Europe is being developed and expanded together with the European energy market operators E.ON SE, OMV AG and Royal Dutch Shell. Constant cooperation with such giants guarantees the reliability and prospects of Gazprom shares. Buying shares in such a company is very profitable and prestigious for investors.
Gazprom shareholders and share price
In fact, Gazprom is managed by the state, as more than half of its shares are owned by the state in the person of three state structures. The main one is the Federal Agency for State Property Management, which owns 39% of shares. State-controlled companies Rosneftegaz and Rosgazifikatsiya own 11% and 0.9%, respectively. The rest of the shares are held by various legal entities and individuals. Among them 28% are owners of American depositary receipts. In total, more than 23.6 billion shares have been issued. Currently, 22.127 billion shares are in circulation with market capitalization of more than three trillion rubles.
The nominal value of the shares at the time of issue was RUB 5. Before the 2008 crisis, Gazprom shares were growing in price. If in 2001 the share cost 34 rubles, in 2004 it went up to 85 rubles. Gazprom shares with the GAZP ticker were admitted to trading on IMBB and rose sharply in 2006. The price was kept at around 300 roubles, and in 2008 the maximum price of 365 roubles was reached. But because of the global crisis, securities fell in price to 109 rubles. Gradual growth began in 2009. In recent years, the price has fluctuated around 130-140 rubles. Gazprom shares are listed on the first level of the stock exchange list, and are among the top five trading instruments of the Russian stock exchange market in terms of liquidity and other parameters.
OAO Gazprom continuously pays dividends to its shareholders. It’s an important source of income for stockholders. Since 2010, a payment scheme has been in place whereby 10% of the annual net profit is allocated to shareholders for distribution to them. In some cases, this part may increase to 17-35%. The annual general meeting of shareholders shall determine the exact amount. No action is required to receive dividends. Money is transferred to the brokerage or bank accounts of shareholders within ten to twenty five days after the decision on the amount of payments. The only thing that should be taken into account here is the timing of entering personal information in the register of shareholders. This takes three days, and at the time of distribution of dividends the data of the shareholder must be entered in the National Settlement Depository.
The amount of net profit on which dividends are accrued depends on many factors. These are mainly world prices for energy carriers, which are formed by supply and demand in the market. Dependence on geopolitics is reflected in the fact that Gazprom is building gas pipelines bypassing Ukraine and China, which costs a lot of money and reduces profitability. However, in recent years, payments have been stable at RUB 7-8 per share. It is already known that it is planned to pay 9 rubles in 2018. In the history of Gazprom, no dividends have been paid except in 1999. At the beginning, the company’s profitability was symbolic and kopecks. Since 2001, dividends have been rising, falling only in 2009.
Purchase and sale of shares
Joint Stock Company Gazprom issued ordinary and preferred shares. Only common shares are for sale. They are bought by the largest banks, investment and pension funds, investing money in the Russian economy. However, everyone can become the owner of these shares. Individuals can buy shares without much difficulty. And these securities are also sold abroad. The American bank “Bank Of New York Mellon” deposited shares of Gazprom, each of which is equal to two ordinary shares. The shares themselves are kept in the bank, and ADRs are sold and bought in the world stock markets. This is the name of the American Depositary Receipt. This security determines ownership and is converted into shares at any time.
Shares of any company, not excluding Gazprom, are bought for profit. There are two ways to make a profit. The traditional and most reliable method is the long-term investment of funds to receive dividends. The second method is a short-term purchase for resale with an increase in the exchange rate price. It is not necessary to buy the shares themselves in order to derive profit from the exchange rate differences. Brokerage companies offer contracts for price difference, which can be bought or sold at any time. These activities require attention and time to constantly check forex and stock quotes online.
Where do they buy Gazprom shares
The company itself doesn’t sell its shares. Sale and purchase are carried out by professional participants of stock exchanges where securities are traded. These are commercial banks, stockbrokers, investment companies. Gazprom shares are sold in lots, not one lot each. Gazprom’s standard lot is ten shares. That is, the price of one lot will be about one and a half thousand rubles. That’s what potential investors should be based on.
Purchase of shares in banks
The easiest way to buy Gaprom shares in Gazprombank is to buy them. This bank is a part of Gazprom, but has the right to sell and buy securities. To buy shares in Gazprombank, you will need to come to the branch, document the purchase in the form of a sale and purchase agreement and register the shares with the depository. The price may be higher than on the stock exchange, although there is no need to pay commissions. You don’t have to open a bank account. You can pay in cash or through another bank.
Gazmrom shares can be bought through other banks as well. But that’s not the way it works. You need to open an investment account with Sberbank and VTB 24, top up the account and then submit a purchase order. A commission fee is charged for the services. In fact, these are brokerage services, which are also provided by Alfa-Bank, Promsvyazbank, Otkritie Bank. The advantage is that a visit to the bank will only be required at the first stage, and then you can buy shares of various companies online at any time from anywhere. Shares can be kept in the bank’s depository after the purchase. This method is better suited for those who invest in order to receive dividends.
Purchase of shares on the stock exchange
Gazprom shares are listed and traded on the MICEX-RTS and St. Petersburg Stock Exchanges. You can buy and sell any on the exchange only through a licensed broker. The largest broker in Russia is Finam-Broker, a member of the Finam holding company. Many large banks have subsidiary brokerage companies. All of them have corresponding licenses together with Forex brokers with the license of the Central Bank of Russia.
To trade on the stock exchange, you need to sign a contract with a brokerage company. It’s a simple process that takes one or two days. You will need to provide identification documents and deposit money into your brokerage account. The client is provided with special software or access to an online platform for making transactions via the Internet. Investor sends an order to the broker to buy or sell shares. If the purpose of the acquisition is a long-term investment, you can send a share purchase order by phone. To do this, the client receives a telephone password at registration, by which the broker identifies the client and buys shares on his behalf.
Derivatives trading on Gazprom shares
It is not necessary to acquire Gazprom shares physically to gain profit from trading. Derivative financial instruments exist for all liquid shares that are in high demand. The most famous and popular are contracts for difference (CFD). This is a more profitable and quicker way to make money on securities. Such services are offered by the Forex brokerage company, Forex Club and other CFD brokers, which are included in the rating of the Brokers.ru portal. CFD trading is possible with leverage. Besides, it is possible to earn on price growth as well as on falling. Getting access to such trading is much easier than trading in stocks, and the initial capital required is much less.
Choosing a broker to trade CFD
Many brokerage companies now offer CFD trading on stocks. However, not everyone on the list has Gazprom shares. This service can be found mainly with large Russian brokers such as Finam, Forex Club, Teletrade, Forex brokerage, Alpari and some others. Deposit replenishment methods and trading conditions are different for everyone, so you should choose a broker according to your preferences. In addition, the reliability of the company and the opinion of traders are also important. Therefore, it is advisable to review the feedback about BCS Forex and other brokers before making a final choice.
One of the best companies is the Forex Club. This is the oldest broker who has been working since 1997. The company offers very favorable conditions, and on the first deposit provides a bonus of 100%. Forex Club LLC was one of the first companies to receive a license from the Central Bank of the Russian Federation. If you read the reviews about the Forex Club, it becomes clear that it is a really reliable company. Registration is online and takes just a few minutes. You can trade in the Forex Club immediately after making a minimum deposit of $100. After registration, the customer gets access to the Libertex online platform. It’s a simple, intuitive trading terminal. It is enough to find Gazprom shares in the lists of trading instruments and open a position to buy or sell. To determine the price and market situation, the platform has built-in price change charts and technical analysis tools
Should I buy Gazprom shares? Watch the video on this subject.