Gazprom CollapsesShares in state-owned Russian energy company Gazprom plunged 35% today in response to the company cancelling its dividend payout to shareholders for the first time since 1998. Announcing the news, Deputy CEO Famil Sadygov said “The shareholders decided that in the current situation it is not advisable to pay dividends based on the 2021 results.” Continuing, Sadygov said that the company would instead rather focus on gasification in the Russian region along with paying higher taxes. Looking ahead, the company outlined plans to spend around 526 billion roubles ($10 billion) on gasification up to 2025.Given that the largest draw for investors was the company’s strong dividend payouts, the news has sent shares reeling as investors off-load positions Gazprom shares had only just recovered from the initial downside move in response to the invasion announcement in February.Technical ViewsGazpromThe sharp drop in share prices this week has seen Gazprom trading back down to test support at the 207.48 level from prior highs around the 320 mark. This is a big support level for the stock and a break lower here will be highly bearish, putting focus on a test of the 157.38 level next.
Source: Tickmill
