Market capitalisation of Top 100 companies falls 15%
The market capitalization of the 100 largest listed companies in the world declined by 15%, representing USD 3,9 trillion în Q1 2020, because of the COVID-19 pandemic, after an increase of 20% in March – December 2019, according to PwC’s Global Top 100 companies. The companies in the Oil & Gas sector were hit hardest.
As a result of this evolution, between 31 March 2019 and 31 March 2020, for which the ranking is made, the market value of the 100 largest listed companies in the world reached USD 21.5 trillion, 2% up from the previous corresponding period.
”This medical crisis has led to a short-term decline in the performance and market value of many companies, which is likely to have a negative effect in the medium and long term. In the three months to March 2020, the market appears to have picked winners and losers in terms of sectors. Although we see losses across the board, the negative impact has been stronger for the financial and oil and gas industries. It is clear that public market investors are becoming more cautious of high-risk valuations and focus on companies which generate profit and cash”, said Dinu Bumbăcea, Partner and Advisory Leader of PwC Romania.