LSE share trading plunges as global shocks take their toll

THE SCALE of the slump in capital markets activity has been underlined by new figures showing typical trading values in London have dropped by more than a quarter.

The average daily value of shares traded on the UK electronic order book of the London stock exchange has fallen by 27 per cent over two years.

The figure was £4.3bn at the end of May, down from £5.9bn for the same month in 2010.

A series of major macroeconomic shocks have, however, triggered spikes in trading at various points over the last two years, leading to a more dramatic comparison.

In May 2010 Eurozone leaders agreed a €110bn (now £88.9bn) package of emergency loans which they hoped, at the time, would rescue Greece’s debt-stricken economy.

The LSE’s monthly market report, published yesterday, also showed the average daily number of trades across the group’s electronic equity order books was 1.5m in May, down seven per cent on the figure for April.

The average daily value traded was £7.7bn in May, down six per cent on the previous month.