PriceWaterhouseCoopers just released their annual survey of the world’s largest companies and the results are impressive. The Global Top 100 ranking shows the The markett capitalisation of the 100 largest coorporations has increased significantly by $2,597bn or 15% compared to 31 March 2017, which is on top of a 12% increase in 2017.
Forty eight percent of growth in the past year has been contributed by US companies, on the back of strong economic conditions and their pre-eminent position in the technology sector. Europe registers an increase in market capitalisation for the second year running, with its market share remaining unchanged, and China fills in the rest with impressive gains.
For the fourth year running, the US accounts for more than half of the Top 100 (54 companies, down from 55 in 2017). It also weighs in with 61% of the overall market capitalisation, down from 63% last year.
Amazon is the strongest performer in terms of absolute increase in market capitalisation, gaining $278bn or 66% in value compared to 2017. It’s followed by two Chinese companies: Tencent, up by $224bn 0r 82%, and Alibaba, rising by $201bn or 75%. The next three highest performers in absolute terms are all from the US – Microsoft, Alphabet and Apple.
Turning to sectors, technology remains ahead of the financial sector in market capitalisation for the third successive year, with consumer goods in third place. The global top three are still technology companies – Apple, Alphabet, Microsoft – followed by Tencent in fifth position and Facebook in eighth, down from sixth last year.
But the real story is China as its companies become more valuable.
The market capitalisation of the companies from China in the Top 100 leaps by 57% compared to 2017, with 12 Chinese companies making the Top 100, up from 10 last year. Hong Kong contributes another two companies, up from one in 2017. In terms of absolute increase in market capitalisation, Tencent is the leading Chinese performer in 2018 for the second year running, and the second highest overall after Amazon, increasing its value by 82% to $496bn. Alibaba is the second highest performer from China and third overall, increasing its value by 75% to $470bn. These strong increases have pushed both companies into the Top 10 in terms of market capitalisation, with Tencent rising to fifth and Alibaba to seventh.
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