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Last Updated: Monday, 19 December 2005, 18:52 GMT
Kazakh firm joins FTSE favourites
The headquarters of the London Stock Exchange
Firms hopes to attract more investors by listing in London
Kazakhstan copper mining firm Kazakhmys has joined London's benchmark FTSE 100 share index, lining up alongside favourites like BP, Barclays and Boots.

It is the first former Soviet bloc company to join the index, but is one of a growing number of firms from the region to list its shares in London.

Since its October listing, Kazakhmys' shares have risen almost 22%.

On Monday's FTSE 100, its shares fell 1.2% to 680p, after it reported a fall in third-quarter copper production.

Privatised by the Kazakhstan government, Kazakhmys is the tenth largest copper producer in the world, with 16 mines across the country.

Access to investors

It has benefited from the recent surges in commodity prices, but some investors still have their reservations about the company:

"What we would really like to see is a breakdown of costs across the different mines within the group," said John Meyer, a mining analyst with Numis Securities.

"We don't really know what is going on within the different divisions of the business - to really analyse a copper business, that it what you need to know."

Companies from Russia and surrounding states are being drawn to the London Stock Exchange because it is close geographically and offers access to investors and publicity.

The FTSE 100 is reviewed four times a year to ensure it represents the 100 largest UK listed companies.

In the latest review, Kazakhmys was joined in the benchmark index by housebuilder Persimmon.

Bookmaker William Hill and leisure group Whitbread were relegated.

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