Thursday, December 19

Market Capitalization of 100 Global Companies Rises To $20 Trillion

The total market capitalization of the top 100 global companies has risen up by 15 percent since last year to $20 trillion. The US stood at the leading position with 54 companies on the list.

In terms of the absolute rise in market capitalization, the best and the strongest performer was Amazon gaining $278 billion or 66 percent in the value compared to the previous year.

The companies that come after the e-commerce giant are the two Chinese companies – Tencent, up by $224 billion or 82 percent, and Alibaba, up by $ 201 billion or 75 percent. The next three highest performers in absolute terms are all from the US including Microsoft, Alphabet and Apple.

According to the reports, the total capitalization of the top 100 global companies has grown on an annualized basis, since the global financial crisis. The US accounts for more than half of the top 100 (54 companies, down from 55 in 2017).

“48 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,” the report stated.

Other companies in the top 10 on the basis of the absolute increase in market capitalization include Ping An Insurance (up by $ 90 billion), ICBC (up by $ 89 billion), Boeing (up by $ 85 billion), Berkshire Hathaway (up by $ 81 billion). No Indian company was included in the list. 12 Chinese companies made to the top 100, up from 10 last year. Apart from this, Hong Kong also had another two companies, up from one in 2017.

Talking of the sector-wise analysis, the technology sector stays ahead of the financial sector in terms of market capitalization. This has been reported for the third successive year. The Global top three are tech companies. Also, the fifth and eighth position is held by tech companies.