COVID-19 pandemic has reduced by 3.9 trillion USD the market capitalisation of the 100 largest listed companies in the world

The market capitalisation of the 100 largest listed companies in the world declined by 15 percent, representing 3.9 trillion USD în Q1 2020, because of the COVID-19 pandemic, after an increase of 20 percent 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 21.5 trillion USD, 2 percent up from the previous corresponding period.

”Clearly, 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 as well. 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 obviously 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 Bumbacea, Partner and Advisory Leader of PwC Romania.

Energy and the financial sector, the biggest declines. At the opposite pole, utilities, technology and health

In the first three months of 2020, all sectors declined. The most affected was oil and gas, down 37 percent, followed by finance by 23 percent.

The smallest decreases were registered by the utilities companies, of 1 percent, technology, which lost 11 percent of the market capitalization, and by the consumer service companies, with minus 6 percent. The latter’s evolution was supported by the 16 percent (23 billion USD) growth of Netflix, one of the ten companies whose market value increased during that period.

Top 10 most valuable companies. Saudi Aramco ranks first

Saudi Aramco joined the Global Top 100 this year having undertaken the largest IPO in history in December 2019. Saudi Aramco entered the list in first position and has retained this position ever since, with a market capitalisation at 31 March 2020 of 1.6 trillion USD.

Saudi Aramco has thus surpassed last year’s leader, Microsoft, which is now on second place, followed by Apple.