- ORIGINAL NEWS
As London loses another listing, analysts are wary of writing off the UK capital
- SUMMARY
TUI, a German travel company, has decided to remove its shares from the London Stock Exchange and list solely in Frankfurt.
The move comes after investors expressed concerns about dwindling liquidity in London and a shift toward Germany.
Currently, 77% of TUI share transactions occur in Germany and only 23% in the UK.
London has seen a decline in its status as a financial center in recent years, with several companies opting to list in other markets like New York instead.
Despite this, experts believe TUI’s decision is specific to the company and should not be seen as a trend.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
Negative
“Around 77% of transactions in TUI shares are currently settled via Germany, with the U.K. now accounting for less than a quarter.”
“A lot of comments were about if we were to go to Frankfurt, one, liquidity would be in one pool only. The other point was that a lot said ‘then you are more prominent in the MDAX than where you are today in the FTSE 250,’ and there were also some comments that [the U.K.] could be a more challenging market environment today.”
“U.K. stocks are trading at a considerable discount to the rest of Europe, having suffered an investor flight in recent years.”
“The country’s blue chip FTSE 100 index is down almost 5% over the past year, compared to a 5% increase for the pan-European Stoxx 600.”
“London has also suffered a number of de-listings and high-profile IPO snubs over the past year.”
“The number of applications to list in the Square Mile fell to a six-year low in 2023, according to data obtained by investment platform XTB late last year and reported in several U.K. media outlets.”
“However, I can understand the rationale behind this proposal, given that TUI’s headquarters is in Germany and only approximately 22% of its trading in 2023 took place via the U.K. market.”
“On various metrics, London remains the largest exchange in Europe and has actually faired better in 2023 in terms of activity than the other European exchanges like Frankfurt, Paris and Amsterdam.”