Pound boost for LSE — but Brexit cuts back listingsComments Off on Pound boost for LSE — but Brexit cuts back listings
BREXIT hindered and helped the London Stock Exchange last quarter with the drop in the pound bolstering income but a slump in new cash raised by companies listed on the market proved a weak spot.
The group, set to merge with German rival Deutsche Börse if Brussels approves the plan, said income for the third quarter rose 19% to £414.6 million, flattered by weak sterling. Stripping out currency moves, income rose at 9%.
There was a sting in the tail, however: Brexit has damped activity for stock market flotations and fundraising. New money raised for London listed companies is off 63% compared with a year ago, and the number of stock market floats fell 15% compared with the same period last year.
LSE said every time the dollar-sterling rate changes $0.05 it translates into a £3.5 million advantage for the company’s income. The dollar has strengthened 15% against the pound compared with last year.