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Soaring FTSE is great for North West - Deloitte

The all-time high recently experienced by the FTSE100 will have a positive impact on confidence in North West businesses, according to Deloitte.

The London Stock Exchange’s ‘FTSE100’ share index hit a new high this week, surpassing the previous record set on 30 December 1999, at the height of the ‘dotcom boom’.

Experts from the business advisory firm suggest that while it is unlikely that listed companies based in the North West will see a significant direct reaction to this news, the indirect impact will result in a considerable growth in investor confidence across all markets.

This follows on from further promising results seen in Deloitte’s latest North West Share Index report, which revealed that the region’s listed companies enjoyed a stellar end to 2014. North West businesses added almost £2bn to their collective market capitalisation in the final quarter of the year, which swelled to a year high of £25bn.

Chris Robertson, partner and head of plc activity at Deloitte in the North West, said: “The strong performance of the largest companies listed on the London Stock Exchange will inevitably boost investor confidence across the country, including the North West. With the region playing host to some of the UK’s most prolific private equity houses and advisers, strong stock market conditions provide a positive backdrop for deal activity across both public and private markets.

“The record-high witnessed by the FTSE100 is largely due to a perceived easing in macroeconomic and geopolitical issues, most notably reduced uncertainty surrounding a potential Greek exit from the Eurozone. Whilst some of these risks may have eased, they have not disappeared altogether and we may well continue to see market volatility, so investors should still be cautious when looking for the next deal.

“Nevertheless, the North West’s listed businesses had an exceptional end to 2014, and it’s an exciting time for companies in the region. Confidence is high, and we expect capital market activity to continue where it left off last year.”

This was posted in Bdaily's Members' News section by Pablo Rodriguez .