Private investors in the UK lost £11.5 billion (€13.5 billion) between the end of last year and June 18 with the value of their holdings falling to £210.7 billion.
Capita Registrars says investors did not anticipate the market dip that began in early June and therefore failed to take profits after the market rally this year.
Instead, they continued to buy right up until the end of May.
Since the end of last year, private investors added £2.3 billion to their holding. Despite the recent dip in the market, they continue to bet on a stronger economy and favour cyclically sensitive sectors.
Dividends are expected to drop by £200 million to £8.8 billion.
“Rising share prices certainly attract new money, but the vast sums being paid out by UK firms in dividends provided have also proved an important lure, as investors have struggled to find income anywhere else,” Capita Registrars notes, highlighting also that “income will be harder to come by this year”.
Capita Registrars provides share registration, corporate actions and share plans among other services.
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