Plunge in UK share trading

THIS year is on course to see the lowest trading volumes in UK shares in nearly a decade, according to a new report.
By The Newsroom
Published 12th Aug 2010, 22:52 BST
Updated 12th Aug 2010, 22:52 BST

Shares worth 1.46 times the value of UK plc are set to trade in 2010, the lowest level since 2002, said Equiniti, the share registrar.

Wayne Story, chief executive, said: "Britain's ultimately unsustainable economic boom was reflected in stock market activity too.

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"The euphoria of the five-year bull market up to its peak in June 2007 brought a massive increase in share trading volumes, far ahead of anything the UK had ever seen before.

"There has been a dramatic loss of energy in the stock markets since then. Today, the markets are still in post-Lehmans shock.

"So far in 2010, trading in UK equities has been even thinner than in 2009 once you adjust for the increase in values since their recession-hit nadir."

This year 2.5 trillion UK equities will be traded on current trends, which is almost two fifths below the peak in 2007 when 4 trillion equities changed hands.

Mr Story added: "2008-2010 have seen the most prolonged volatility in at least the last 26 years."