Shares in Russian gas monopoly Gazprom rallied to an all-time high on Wednesday after President Vladimir Putin approved a plan to lift a ban on foreign ownership of its domestic shares.
Gazprom's local shares rallied 9.7 percent to 74.29 roubles ($2.54), extending Tuesday's limit-up 15 percent gain.
Analysts say removal of the "ring fence" on Gazprom locals, expected early next year, will lead its local stock to be included in the benchmark MSCI emerging markets stock index and encourage foreign investors to up their exposure.
Brokerage Troika Dialog said it expected the ring fence to come down in the first half of 2005, after Gazprom completes the takeover of state oil firm Rosneft in an equity swap which will secure government control over the world's No 1 gas producer.
"We are increasing our fair value for Gazprom by 14 percent to $3.05 a share and maintain our buy recommendation on the local stock," Troika said in a note.
Troika kept a hold rating on Gazprom's London-listed American depositary shares, which trade at a premium to the locals but account for only 3.4 percent of the gas giant's equity. UFG rates the ADSs market perform.