- Further issues in London up 27% to a record £80.8bn in 2009, 13% of global issuance
- London accounted for 9% of international IPOs by number in 2009
- The 613 foreign companies listed on the London Stock Exchange at the end of 2009 was more than on any other exchange
London has consolidated its position as one of the leading centres for international equity trading in 2009 as further issues reached record levels for the second year running according to TheCityUK: the new independent membership body promoting the UK financial and related professional services industry.
TheCityUK’s report Equity Markets 2010 noted that money raised on the London Stock Exchange through further issues reached a record £80.8bn in 2009 or 13% of the global total. This was up 27% from 2008, itself a record year, and was largely a result of supply constraints and higher cost of raising finance on other markets.
Money raised through IPOs fell to £1.8bn, one quarter of 2008. IPOs have begun to pick up in the first six months of 2010 and accounted for nearly a third of the £15bn raised in that period. The nine international IPOs in London accounted for 9% of global IPOs in 2009.
The number of foreign companies listed on the London Stock Exchange at the end of 2009 (613) was ahead of the NYSE (495) and Nasdaq (283). London accounted for 17% of global foreign equity trading in 2009; a share which would be higher if it were to include foreign equity trading executed on, or reported to, other trading venues in London.
The market value of 1,121 companies trading on the Main Market of the London Stock Exchange increased 34% in 2009 to £1,731bn. Secondary trading largely mirrored global trends and declined a third from the record levels of the previous two years to £2,342bn in 2009. In addition to the London Stock Exchange and AIM, trading in UK equities is facilitated by Multilateral Trading Facilities (MTFs) that include PLUS Markets, which is also a recognised exchange. MTFs have gained market share of secondary trading since the introduction of MiFID in 2007 and now account for around 40% of FTSE-100 trading. Overall trading in UK equities, including trading on PLUS Markets and MTFs totalled around £3.2 trillion in 2009.
Marko Maslakovic, Senior Manager, Economic Research at TheCityUK, said: “These record figures demonstrate London’s continued importance as an international centre for capital raising. The structural advantages which have long attracted international companies to London include the highest level of professional expertise and diversity of services on offer.”
TheCityUK’s Equity Markets 2010 report also reveals that:- The number employed in London in the securities market totalled 81,500 at the end of 2008.
- UK securities dealing generated net exports of £1.4bn in 2009.
- Operating profits of securities dealers in the UK totalled £9.7bn in 2009.
Click here to download the Equity Markets 2010