Our own dear stockmarket, as signalled by the ‘flagship’ FTSE 100 index, has led the world in recent days and even weeks. It’s at a record high of over 8300, which must be a good thing, right? Doesn’t that mean that those in the know think we’re doing OK here? It’s well known, or at least often said that markets are looking at what is likely to happen to companies profits next year, and demand for shares now is based on what they think profits will be next time they’re declared. Well, yes, but here’s the dampener. Eight of the top ten companies in the FTSE get less than 10% of their revenue from the UK. HSBC gets most, at 33%, then Glencore at 15%, most others in single figures. So what our market says about us, our prospects and economy is, at best, a moot point. I’d say.
“FCA to simplify listing rules in bid to revive UK stock market”
Fewer companies are ‘listing’, choosing to have their shares bought and sold once they’re big enough, on our stockmarkets; and some big names already there are, or are considering moving to others stock markets, mainly the US.