Overseas Share Of UK Stock Market Increased In 2008

The ONS survey of the distribution of beneficial ownership of ordinary shares in quoted companies in the UK showed that the UK stock market was valued at £1,158.4bn at the end of 2008 and that 41.5% of shares, amounting to £481.1bn, were owned by overseas investors. At the end of 2006 it weas 40%.

UK individuals owned 10.7% of ordinary shares worth £117.8bn. In 2006 it was 12.8% and when the survey began in 1963 the proportion was 54% which contrasts with the proportion owned by overseas companies at that time which was 7% and went down to 3.6% in 1981.

Insurance companies owned 13.4% worth £154.9bn, down from 14.7%. Pension funds owned 12.8% worth £148.8bn. The proportion they owned when the survey began was 6.4%. They greatly increased their percentage during the 1980s and 90s. Banks have also increased their share ownership in recent years. Their proportion increased to 3.5%, worth £40.6bn, their highest proprtion since these records began in 1963. Other financial institutions increased to 10%, worth £115.3bn, from 9.6%.

Public sector holdings have risen due to Government interventions in financial companies during the financial crisis of 2008 including the recapitalisations of RBS, Lloyds TSB and HBOS. The proportion has risen to 1.1% or from £2bn to £13bn. It had reached 3.6% in 1975.

FTSE 100 companies continue to dominate the UK stock market. Funds invested in FTSE 100 companies varied from 64.9% for individuals to 96.5% for private non-financial companies and 84.6% of investment in quoted companies was in FTSE 100 companies.

Of the 41.5% of UK ordinary shares owned by the rest of the world, 30% are owned by companies from North America, European companies owned 34% in 2008 compared to 38% in 2001, 17% by Asian companies and 15% by African companies whose percentage has increased since 2004. Australasia and Oceania now has 3% from 1% in 2004.