PetroChina doubles its stock value in Shanghai debut, surpasses ExxonMobile in capitalization. It had to happen sometime. ExxonMobile (XOM – still below $90 a share) has now relinquished its throne as the largest-cap oil company in the world. PetroChina (PTR) debuted in Shanghai today, and its stock price doubled, helping the company surpass Exxon. PTR is dropping now, but it still made one big impression on the stock market. It received A-share listing and it looks somewhat promising. MarketWatch reports on the positive Shanghai opening for PTR:
"The A-share listing is positive because it will open another avenue for the company to raise funds in the future," said Louis Wong, research director at Phillip Securities in Hong Kong."From the investors' point of view it's also positive because they have access to invest in the largest-market-cap oil company in the world."
PetroChina hasn't offered anything new or unexpected in its Shanghai debut, but investors are watching to see if expected announcements of new discoveries in oil, as well as further diversification into gas, will help spur PTR to further growth.
Questions are arising for ethical investors. As in the case of Chinese solar stocks, some are wondering about China's human rights record. Add those to concerns about the environment, due to the nature of PetroChina as a company, and PTR doesn't seem very ethical to some, despite the possibility of making bigger bucks.
Disclosure: I do not invest in oil stock, although I am considering STO.