Stephen Fine says a combination of better GDP figures and signs of falling inflation are helping to improve sentiment in stock markets
Mr Fine pointed to the float of a Raspberry Pi earlier this week, which was worked on by Peel Hunt, as evidence of the improving sentiment. Shares jumped almost 40% on the opening day.
National Grid's £7bn share raise, its biggest in a decade, and subsequent sell-offs in Haleon and the London Stock Exchange Group are also evidence of this. a healthier London market, Mr Fine said.
Peel Hunt warned last year that parts of the market were stuck in a “doomed loop”.
Low prices meant fewer investors were buying shares, causing their prices to fall further. At the same time, overseas investors were using the UK “discount” to buy UK businesses on the cheap, meaning they had fewer shares.
Peel Hunt warned that the UK's smaller companies index could cease to exist by 2028 if the downturn continued.
Mr Fine said a combination of better GDP figures, signs of easing inflation and expectations of interest rate cuts had helped improve sentiment in stock markets.
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