- Market capitalisation of the Top 100 companies fell 11% year-on-year – equivalent to almost US$3.8 trillion – the greatest decrease since 2009 (-39%)
- Despite a challenging global macroeconomic environment, Europe grew 9.5% – the only region to do so
- Technology – the greatest proportion of the list – recorded its first decline since 2016, although retained its top sector position
- No direct entrants were made to the list as a result of a subdued global IPO market
- Even with an 11% decline, the Global Top 100 has generated a CAGR of 9% over ten years
LONDON: Market capitalisation of the global Top 100 declined by 11% in 2023 – equivalent to almost US$3.8 trillion – representing the first yearly decline since 2016 and the greatest drop since the global financial crisis of 2009 (-39%), according to new PwC analysis, the Global Top 100 Companies report, published recently.
A challenging macroeconomic environment caused by ongoing tightening of fiscal policy, high inflation, and uncertainty surrounding the United States and European banking sector have weighed on equity markets globally. The US, the largest contributor to the Global Top 100, was the main driver of this decrease – dropping US$2.9 trillion in value – however retained its number one spot as a share of the list, ahead of Saudi Arabia and China. Europe outperformed all other regions, increasing its share of the Global Top 100 from 10% in 2022 to 13% in 2023, moving up to second spot on the regional list.
Stuart Newman, Global IPO Centre Leader, Partner, PwC UK, said: “PwC’s Global Top 100 report remains an important window into the biggest trends driving the world’s economy and the most significant dynamics at play in global equity markets. Challenging market conditions over the last year have clearly impacted the world’s biggest companies. However, rebounds for most sectors in the first quarter of 2023 and the growth of companies in Europe are cause for cautious optimism.”
Europe outperforms as US continues to dominate share of Global Top 100
US companies maintained their dominant share of the Global Top 100 – accounting for 70% of the list – but suffered a 12% fall – equivalent to US$3 trillion – settling at US$21.7 trillion. Europe was the only region to grow – up 9.5% – while China and its regions fell 7.3% and the rest of the world fell 26.3%.
Few jurisdictions in the Global Top 100 managed to increase market capitalisation over the year. The only jurisdictions to record an increase were those in Europe due to a combination of new entrants and growth in like-for-like market capitalisation. At a jurisdiction level, France entered the top five at number four in 2023 (US$980bn), replacing Switzerland (US$765bn) and climbing ahead of the UK at fifth place (US$852bn). Despite double digit declines, the US (-12%), Saudi Arabia (-18%) and Mainland China (-11%) retained their position in the top three and were the only jurisdictions with combined market capitalisations of over US$1 trillion.
Key industries decline as technology maintains largest industry share
At the industry level on a like-for-like basis, all key sectors declined in market capitalisation, led by consumer discretionary (-23%), communication services (-18%), financials (-11%), and energy (-10%). Financials and Consumer Discretionary accounted for 56% of the total fall in market capitalisation. Despite a rally for technology in Q1 of 2023, the technology sector fell 8% overall – its first decline since 2016. However, the sector grew its share as a percentage of the Global Top 100 – from 27% in 2022 to 28% in 2023 – maintaining its top position in the Global Top 100.
Exits and entrances
There were no direct entrants to the Global Top 100 as a result of an IPO this year, in line with the subdued IPO market globally. Ninety-one companies, from March 2022, maintained their position in the 2023 list – seeing more stability in the Global Top 100 in 2023 than the previous year. The top five companies remain unchanged, but for the first time in 10 years all of them saw a fall in market cap, which accounted for 50% of the overall market cap drop this year.
