Is the sun setting on London equities?
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Is the sun going down on London stocks? New report charts LSE’s ‘breathtaking’ decline over the past 25 years
The downturn of the London Stock Exchange over the past 25 years has been “breathtaking” and British stocks are no longer seen as must-own assets, a damning report has found.
The Investor Forum, which represents shareholders with more than £680 billion in UK stocks, including US giant Blackrock and the Norwegian sovereign wealth fund, warned in its annual review that the UK market needs reform.
It said the UK is hampered by disagreements over executive pay, the ESG agenda and ticking off corporate governance issues.
Downturn: The Investor Forum, which represents shareholders with more than £680 billion in UK equities, warned in its annual review that the UK market needs reform
The Investor Forum, which represents shareholders with more than £680 billion in UK equities, warned in its annual review that the UK market needs reform.
Boards, investors and regulators must do more to attract investment, it said.
Executive Director Andy Griffiths said: ‘The declining relevance of UK stock markets over the last 25 years is breathtaking.
It is critical that the focus of the reform recognizes the global nature of finance and seeks to create an environment in which UK listed companies can once again thrive.
“We cannot just hope for a better result. Practical steps are needed from companies, investors and regulators if we want to create a vibrant market to raise capital.”
It comes as the government works with regulators and the stock exchange to improve the rules governing UK markets and develop businesses from start-ups to a point where they could go public.