Main Market Insights
15 October 2018
Original content provided by BDO United Kingdom
Our Capital Markets team have produced a six monthly survey analysing the equity activity on the Main Market of the London Stock Exchange. The report considers the performance of the Main Market and its listed companies.
Stock markets opened the year at record highs, but the markets have since continued to feel the effects of a turbulent geopolitical and economic environment.
Amidst this uncertainty, transaction activity has inevitably been quieter so far this year. There has been a shift in investors’ focus, with new issue proceeds (£1.1bn) the lowest since the UK Referendum, but further issue proceeds £2.9bn higher than H217 (at £8.3bn).
With the FTSE back near its all-time high and its volatility having settled somewhat since June – at least relative to the six months prior - we hope to see more new entrants to the market and sustained activity for further issues in the second half of 2018.
However, the markets remain uncertain territory and – with Brexit negotiations seemingly hanging in the balance as we look towards October’s EU summit – it is clear that the risk of further shocks to the market will lead businesses and investors to proceed with caution over the next six to twelve months.