The Global Top 100 companies by market capitalisation performed strongly from March to December 2019 and still outperformed industry peers amid market volatility caused by Covid-19 in Q1 2020, according to new analysis by PwC.
PwC analysed the Global Top 100 companies by market capitalisation for the period March-December 2019 as well as for the year to March 31 2020. This dual analysis seeks to provide a clearer picture of how the world’s biggest companies were performing before the Covid-19 crisis created an unprecedented impact on global markets and signs of how they responded in the early days of the crisis.
Ross Hunter, IPO centre leader at PwC, says: “In the nine months to 31 December 2019, the Global Top 100’s market capitalisation grew by an impressive 20%, including the boost from Saudi Aramco joining at the top of the list.
“In the following three months, whilst their overall value fell 15%, the companies within the Global Top 100 outperformed their industry indices, an early indication that investors value the defensive qualities of larger companies and their scope to both come through the crisis and invest in the post Covid-19 world.”
How different companies performed
Saudi Aramco joined the Global Top 100 this year in first place having undertaken the largest IPO in history in December 2019, and has retained this position since then.
Even with Covid-19 disruption, the market capitalisation of Microsoft and Apple each exceed $1-triller as of March 2020. Amazon was valued at $971-billion as of 31 March 2020 but has since exceeded the $1-trillion mark due to a surge in demand for online shopping created by movement restrictions put in place as a measure to contain Covid-19.
Only 10 companies in the Global Top 100 saw an increase in market capitalisation from December 2019 to March 2020. These companies included:
* Netflix, moving from being a top 10 faller from March to December 2019 (market capitalisation -9%) to the second biggest riser through to March 2020 (+16%); and
* Tesla which entered the Global Top 100 and was a top 10 riser in both periods, with its market capitalisation doubling to $96bn
Regional perspectives
All regions experienced an increase in market capitalisation of the companies included in the Global Top 100 until December 2019, after which gains were wiped out in every country (excluding Saudi Arabia).
European companies in the Global Top 100 experienced the most significant reduction in relative terms in the three months to March 2020, with market capitalisation decreasing by 25% ($956-billion).
UK companies in the Global Top 100, with a relatively high Oil & Gas sector weighting, gained a moderate 2% in March to December 2019, before seeing a 28% reduction in market capitalisation to March 2020.
The US continues to dominate the Global Top 100 in terms of number of companies in the list and market capitalisation, albeit with a $2,204-billion (14%) reduction from December 2019-March 2020.
China and its regions, the second largest contributor to the Global Top 100 with 14 companies, lost one company in the year, widening the gap with the US.