European companies continue to lose ground in global league table
The only representative from Central Europe to stay among the most highly valued organizations has been the electricity company ČEZ Prague 9 July 2009 – The ongoing recession has a direct impact on the market capitalization of companies around the world. While Asian businesses showed further gains in value in 2009, this was offset by further declines of organizations based in European countries, according to a bi-annual analysis of the market capitalization of the most highly valued 300 global companies by professional services organization Ernst & Young. The total market capitalization of the top 300 companies by value increased by 8% or US$ 1.1 trillion from 31 December 2008 to 30 June 2009. Being the only representative from Central Europe, the electricity company ČEZ has achieved the 246th ranking (208th as of 31 December 2008). No company from Poland, Slovakia, Hungary or Austria made it to the Top 300 as was also the case of the previous half-year.
Overall market capitalization
The total market capitalization of the top 300 global companies increased by 8% or US$1.1trillion from 31 December 2008 to 30 June 2009, highlighting both the slide in stock markets in the first quarter of the year and the steady improvement from March onwards. This is after successive declines of 22% and 33% in market capitalization in the previous two six-month periods, which wiped US$11.3trillion off the value of those companies. Among the top 100 companies the increase in market capitalization in the first half of 2009 was slightly lower at 6%.
By continent and country
Whereas the number of North American companies has held steady, the number of European companies in the top 300 as of 30 June 2009, compared to 31 December 2007, has fallen from 110 to 95 and the number of Asian companies has increased from 63 to 73. Within the top 100 companies the European decline is more dramatic. As of 31 December 2007 there were 46 European companies in the top 100; by 30 June 2009 that had fallen to 35.
While the companies based in many Western European countries including France, Germany, Italy, Spain and Netherlands all showed further declines in overall market capitalization in the first six months of 2009, this was offset by Chinese, UK, Russian and Brazilian organizations that showed significant gains in value.
By sector
By sector there was a wide disparity in how market capitalizations of the top 100 companies moved from 31 December 2008 to 30 June 2009. Energy share prices improved by 23%, financials by 40% and commodities rose a dramatic 81%. However consumer goods companies in the top100 showed a decline in share price in the period as did utilities companies and heavy industry.
Please see the list of the most highly valued 300 global companies (pdf, 157kb) .
