Peel Hunt Says UK Small-Cap Stock Index on Track for Extinction
- Index members are dwindling due to takeovers, IPO drought
- ‘Pace of de-equitization is relentless,’ Peel Hunt warns
This article is for subscribers only.
An index of UK small-cap stocks will cease to exist by 2028 if the current level of takeover activity persists and the initial public offering market fails to rebound, London stockbroker Peel Hunt Ltd warned.
The number of companies listed on the FTSE Small Cap Index, excluding investment trusts, fell to 114 at the end of 2023 from 160 at the end of 2018, Peel Hunt Head of Research Charles Hall said in a note to clients.