Shares 'out of favour' with UK individuals

The number of UK-based individuals who own shares traded on the London Stock Exchange (LSE) has declined, according to new figures.

Statistics released by the Office for National Statistics (ONS) showed that, at the end of 2008, ten per cent of stocks traded in the capital belonged to this demographic.

This, the BBC reports, is down from 13 per cent in 2006 and a substantial decrease from the 54 per cent of UK residents that held shares in 1963.

’The proportion of shares held by individuals has been on a downward trend,’ the ONS noted, adding that although the fall flattened out between 1989 and 1994 - when it stood at around 20 per cent - the proportion of holdings has continued to drop since then.

The majority (42 per cent) of shares traded on the LSE are now owned by foreign investors, the figures showed, with insurance companies and pension funds owning 13 per cent each.

Last week, Keith Churchouse of Churchouse Financial Planning predicted that gains on the FTSE 100 will be more gradual than the sharp increases that were seen last year.ADNFCR-2318-ID-19583712-ADNFCR