Global Top 100 Ranking: Market Leadership at a Record $ 21 Trillion
The market capitalization of the world's top 100 corporations rose by $ 1.04 trillion (5 percent) to $ 21 trillion within a year. This is one of the key results of the Global Top 100 ranking that PwC published on Tuesday. The ranking analyzes the top 100 in the world by market capitalization. The analysis covers the period from March 31, 2018 to March 31, 2019 and compares changes over the past ten years, as well as regions and industries.
The dominance of US companies and India is growing
The overall growth of the 100 most valuable companies in the world is due to difficult market conditions – 5 percent, much more restrained than in 2018. At that time, the increase was still at 15 percent. US companies continue to dominate the Global Top 100: For the fifth consecutive year, more than half (54) of the world's most valuable companies are from the US. Their market cap share is 63 percent (2018, 61 percent).
According to PwC, the Greater China region has decreased by 4 percent over the last 12 months, especially due to the uncertainty of trade and its impact on local markets. However, companies based in the region of China rank second among the regions. The country with the highest ranking in the ranking is India, although only two Indian companies are in the Global Top 100. Strong domestic stock market performance and robust profit increased market cap by $ 63 billion (37 percent).
The trend is expected to stop
"We expect the trend to continue for companies from China, India and other countries to continue to appreciate in value in the coming years," Kristin Katasta, Senior Partner at PwC Austria. In contrast, Europe saw a 5 percent decline overall. "This is where geopolitical challenges and uncertainty caused by Brexit have played a major role," says Katasta.
The IT sector is advancing: Microsoft replaces Apple
Ranked fourth in the industry is the technology sector, with a market capitalization of $ 5,691 trillion, ahead of the financial and healthcare sectors. However, the growth of the technology industry by 6 percent is significantly lower than in the previous year; By 2018, technology companies have increased their value by an average of 34 percent.
For the first time in seven consecutive years, Apple has been replaced by Microsoft as the most valuable company in the world. The US technology group had a market cap of $ 905 billion (up 29 percent from Apple's 5 percent).
"The four major US technology companies Microsoft, Apple, Amazon and Alphabet are still in their own league, but Chinese companies are likely to postpone the medium and long-term weights with a very large proportion of 'unicorns' by 30 percent." Catast. (Red)