Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Value Of Companies Trading On The London Stock Exchange Dropped By £842bn Amid Coronavirus Outbreak

The coronavirus pandemic has hit the global stock market hard, wiping off billions in stock values amid extreme volatility and massive sell-offs. Historic losses in the first three months of the year have turned into the worst quarter since 1987, even for the largest stock exchanges.

As the second-largest stock exchange market in Europe and seventh globally, the London Stock Exchange has also witnessed a considerable drop since the beginning of the year. According to data gathered by AksjeBloggen, the value of companies trading on the London Stock Exchange amounted to £3.08trn in April, an £842bn plunge compared to December figures.

Market Value Fell Over 30% in Three Years

The coronavirus pandemic followed after the slowest year for fundraising activity on the London stock market in more than a decade. At the beginning of 2017, the market value of companies listed in London amounted to £4.58trn, revealed Statista data. By the end of the same year, this figure dropped to £4.23trn. The downsizing trend followed in 2018, with the value of companies falling to £3.78trn.

The 2019 brought new concerns over a slowing global economic environment hit by and US-China trade tensions, weak eurozone growth, and prolonged Brexit uncertainty. These worrying circumstances knocked flotations and equity raising on the London Stock Exchange, ending the year with a £3.92trn market value.

The first three months of 2020 have witnessed a sharp plunge of market cap, falling from £3.83trn in January to £3trn in March. Although April has seen a slight recovery, increasing by over £80bn from the prior month, statistics indicate the value of companies listed in London plunged by more than 30% in the last three years.

Number of Companies Listed in London Continues to Fall

The Statista data also revealed the number of companies listed on the London Stock Exchange fell considerably over the years. The first significant drop happened at the beginning of 2017, with the figure decreasing from 2,262 to 2,037 between January and February.

The next year brought a recovery with over 2,160 companies in May 2018. However, a total of 28 businesses listed in London were snapped up by private equity firms in ‘public to private deals’ in 2018. By the end of the year, the number of companies decreased to 2,099.

The value of deals more than doubled last year, reaching £21.1bn in total. By December 2019, the number of companies trading on the London Stock Exchange stood at 2,055.

The downsizing trend continued in 2020, with the number of companies falling to 2,020 in April. Despite this, daily trades on the London Stock Exchange spiked in March, reaching over 2 million, a 160% jump compared to January figures.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>

ALSO:

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:



Auckland Airport: Thousands Of Kiwis Travelling For Queen’s Birthday Weekend


Confidence in domestic travel is beginning to steadily ramp up, with thousands of Kiwis travelling within New Zealand for Queen’s Birthday.
Nearly 400 flights will be operating to and from Auckland Airport over the long weekend... More>>

ALSO:

Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO: