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An investor exodus from UK stocks gathered pace last month amid growing fears over an economic ‘doom loop’.
Latest figures from funds network Calastone showed £692million was pulled from UK-focused equity funds in September, up from £657million in August.
That was despite growing hopes of a rebound for the London stock market – which yesterday hit an intra-day record high of 9516 before closing at 9479.14.
It continues a long-term trend of investors dumping UK stocks stretching back more than four years and was described as ‘seemingly unstoppable’ by Edward Glyn, head of global markets at Calastone.
Glyn said the exodus had been muted in recent months amid hopes that some investors were starting to see value in the UK’s cheaply-priced stocks.
But the brakes appear to be off again amid sluggish UK growth, staggering debt and fears over next month’s Budget, as well as rising premiums or ‘spreads’ having to be paid by corporate borrowers to cover the perceived risk of default.
Latest figures from funds network Calastone showed £692m was pulled from UK-focused equity funds in September, up from £657m in August
Glyn said: ‘Doubtless, seeing the UK market reach record levels while still not looking expensive has given some sellers pause for thought.
‘The doom loop of negative commentary on the UK economy may now be winning out. Outflows are on the rise again.’
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .