Stock exchange alert sounded over investors turning backs on London

Capital’s status as financial centre is under threat with Paddy Power owner leaving and others pondering a move

- Simon English

A WARNING over an exodus of major companies from the London stock market was sounded today as investors pull money out of Britain in search of better returns in the United States.

A huge gap in the value of similar companies in London and New York is putting pressure on chief executives to switch their listing in moves that could be devastating to the capital’s status as a global financial centre.

There is growing talk that a giant such as Shell could quit London, turning stock market strife into a full City crisis. Figures compiled for the Evening Standard show the market for new flotations — companies raising money to join the London Stock Exchange — has collapsed.

• New companies raised £12 billion on the LSE in 2021. That fell to £338 million in 2022 and this year (so far) to just £18.5 million.

• Small investors have pulled £25 billion from the stock market in the last two years.

• Large companies such as Paddy Power owner Flutter are moving their stock listing to New York.