If you are considering wealth management strategies in Oswestry or Cheshire, many investors have decided that there are many bargains to be found on the London Stock Exchange (LSE).
For some time now, private equity investors have been drawn to the depressed valuations of stocks listed in the City, which make them attractive opportunities for investment firms. Of particular appeal to institutional investors are global businesses that make their profits overseas but trade at UK market prices.
A valuation gap has emerged between the UK market and its more tech-reliant US counterpart. The data indicates that US stocks are generally pricier than UK ones, trading at a price-to-earnings ratio of almost 22, compared to the UK market which trades at an equivalent ratio of circa 13. As a result, cash rich global investors have recently swept up cheap bargains across a range of sectors, ranging from financial services and digital payment providers to laboratory equipment testers, food manufacturers, and video game developers.
The delisting of several companies from the FTSE has certainly concentrated minds. A total of 88 firms quit London in 2024, followed by a further 50 in 2025, whilst domestic pension funds have sought greater diversification and more rewarding returns elsewhere, thus reducing their allocation to UK-based equities. Companies exiting the City have cited a multitude of reasons including declining market liquidity, lower company valuations, and the excessive burden of administration costs associated with remaining listed.
The question for many UK equity investors now is whether to focus more on the private markets where many former index constituents now operate instead.
