FTSE Small Cap will cease to exist by 2028?

Millyonare

Peel Hunt, an investment bank, predicts the FTSE Small Cap index will cease to exist by 2028 (if current accelerated trends continue).

Companies listed have plunged from -29% from 160 in 2018 to 114 in 2023, and a possible 0 (zero) by 2028.

Companies, such as Lookers, are being taken over, relisting overseas, delisting, going private, etc.

Worth keeping an eye on, if you or others invest in UK smaller companies...

https://www.thisismoney.co.uk/money/markets/article-13268761/FTSE-Small-Cap-index-cease-exist-2028-analysts-predict-takeover-feeding-frenzy.html

aroominyork

What blomin' nonsense. Even if every small cap was bought out, can you imagine the rush of new companies seeking a listing so they could cash in when subsequently bought out? I'm glad I'm not a journo trying to produce column inches that won't have me laughed out of the place.

boingy

Millyonare said:

Peel Hunt, an investment bank, predicts the FTSE Small Cap index will cease to exist by 2028 (if current accelerated trends continue).

Companies listed have plunged from -29% from 160 in 2018 to 114 in 2023, and a possible 0 (zero) by 2028.

Companies, such as Lookers, are being taken over, relisting overseas, delisting, going private, etc.

Worth keeping an eye on, if you or others invest in UK smaller companies...

https://www.thisismoney.co.uk/money/markets/article-13268761/FTSE-Small-Cap-index-cease-exist-2028-analysts-predict-takeover-feeding-frenzy.html

What you're doing wrong there is believing anything you read in the Daily Mail.
Still, it makes a change from your seemingly endless pro-US, anti-UK posts.

Millyonare

What part of "the market is in freefall" does not make sense...

FTSE Small Cap is what is known as a "leaky bucket". The water pouring out is faster than the water pouring in.

Linton

The FTSE100 is defined as the top 100 companies and the FTSE250 is the next 250 companies. So as long as there are more than 350 companies lixted in total the small cap will continue, in principle, to exist.

This does not mean that UK Small Companies are performing particularly badly or rapidly disappearing.  It could be the FTSE100 is losing large companies and everything else is shuffling up.  So at some point all companies now in the FTSE Small Cap will be included in the FTSE250.

Millyonare

The total London stockmarket by marcap and trade volumes has plunged 50-80% this century. Now the FTSE Small Cap is barrelling toward zero by the end of this decade. Dress it up all you want. But the numbers are headed in the wrong direction. The key question now is whether the London stockmarket can pull out of its death spiral.