The London Stock Exchange is to launch a set of regionally defined, attribute led indices, which i...
The London Stock Exchange is to launch a set of regionally defined, attribute led indices, which it claims can help IFAs identify local companies for clients interested in investing in their regional economies.
The market covering the Northwest is the first part of the new LandMARK markets initiative which will see indices created for regions around the UK.
LSE is currently aiming to create a number of markets in the LandMARK series, which are not typical indices but spun-out lists of stocks drawn from the FTSE or Aim.
If the roll-out goes according to plan they will eventually cover London, the Southwest, the Southeast, Scotland, the Northeast, East Anglia, the Midlands and Northern Ireland. Companies are allocated to regions depending on the locations of their head offices.
The aim, according to the LSE, is to highlight potential investments in every area of the UK and thereby improve visibility of local companies, something that LSE believes is a growing priority for investors.
At present, London and the Southeast dominate the listed company universe in the UK.
Up to the end of February, London had 993 listed companies with a combined market cap of £1,176bn while the Southeast had 294 listed companies with a total market cap of £260bn. East Anglia had 121 companies with a market cap of £51bn, the Midlands had 145 with a market cap of £47bn, the Northeast had 144 with a market cap of £45bn, the Northwest had 125 with a market cap of £21bn, Scotland had 176 listed companies with a market cap of £96bn and the Southwest had 127 companies with a total market cap of £28bn.
That means that London makes up 67% of the LandMARK universe, with the Southeast representing a further 15%.
Scotland makes up 6%, the Midlands, East Anglia and Northeast each make up 3%, while the Southwest, including Wales, makes up 2% and the Northwest 1%.
Year to date, London and the Southeast have seen a large amount of new equity listed. London has seen 24 listings with a total market cap of £207bn with the Southeast having had eight listings with a total market cap of £198bn. Scotland has had £129bn of new listings with the other regions adding a total of £121bn.
Average daily trading value in all regions is 18% higher than in 2000.
Average daily trading values have increased over the previous year in all regions. Excluding London, the Southeast accounts for the greatest share of value traded, at 20.7%.
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