Share ownerships figures up 23 per cent

The Office for National Statistics found UK individuals' holdings are worth 204 billion.

09:24 11 June 2004

The Office for National Statistics has found that at the end of last year UK individuals' holdings were worth 204 billion.

The ONS report on share ownership reveals that this figure had risen from 166 billion in 2002 - an increase of 23 per cent. Over the same period individuals' percentage holdings increased from 14.3 per cent of total holdings to 14.9 per cent.

Between January 1st, 2003 and December 31st, 2003 the market value of the stock market increased by 213 billion to 1,368 billion, representing a rise in value of 18.5 per cent.

This annual ONS report aims to improve the classification of the ownership of shares in the National Accounts and to assign the dividends received to the correct type of owner.

An analysis of registers of ordinary shares listed in the UK shows that at the end of 2003, 48.7 per cent of all of them were owned by insurance companies, pension funds and other institutional shareholders - in total worth 666 billion.

Of this figure, 237 billion were owned by insurance companies representing 17.3 per cent of total holdings. However, this is a fall from 19.9 per cent in 2002, and the lowest recorded percentage holding by insurance companies since 1975.

Pension fund holdings were 220 billion in 2003, representing 16.1 per cent of total holdings - an increase from 15.6 per cent at the end of 2002.

As for other financial institutions' holdings, these have risen slightly over the last 12 months to 11.1 per cent - up from 10.5 per cent at the end of 2002.

Banks' holdings of UK shares increased to 2.2 per cent (30 billion), representing their highest share since the survey began in 1963.

Investors from the rest of the world accounted for 32.3 per cent of the ordinary shares, which are valued at 442 billion.