News article

UK stock market set to hit eight-year low

UK stock market set to hit eight-year low
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The UK stock market is on track to record its lowest trading volumes for eight years, according to a report by share registrar Equiniti.

At the current rate, £2.5 trillion of equities will be traded this year, down from £4 trillion in 2007 and less than last year, despite signs of economic recovery.

Wayne Story, Equiniti chief executive, said: "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."

Mr Story attributed the figures to the unprecedented increase in stock market trading leading up to the economic crisis, which was "unsustainable".

Stock trading has experienced the longest period of sustained volatility in at least 26 years between 2008 and 2010, according to the report.

The release of the data coincides with news from Sir Alan Budd, outgoing head of the Office for Budget Responsibility, who told the BBC he believes economic growth is likely to continue.

Posted by Chris Weaver ADNFCR-1681-ID-800027080-ADNFCR