Rest of the world investors owned 33 per cent of UK shares listed on the London Stock Exchange at the end of 2004, according to the Office for National Statistics (ONS) report on share ownership published today. Between 1st January 2004 and 31st December 2004 the UK Stock Market was valued at £1,480 billion (almost £1.5 trillion) - an increase of £112 billion (8 per cent) over the year. Analysis of the ownership of shares in the UK shows that:

* UK individuals' owned £208 billion of shares, 14 per cent

* Almost 50 per cent, £722 billion, of all UK shares are owned by financial institutions with insurance companies owning £254 billion and pension funds owning £233 billion.

* After a significant rise between 2000 and 2001 (5 per cent to 10 per cent), holdings of UK shares by "other" financial institutions' have stabilised at around 11 per cent for the last three years.

* Banks own £40 billion (3 per cent) of UK shares - their highest proportion since the survey began in 1963.

* Foreign investors owned £483 billion (33 per cent) of the UK's ordinary shares and of this £164 billion (34 per cent) were held by investors based in Europe.

* The FTSE 100 companies continue to dominate the UK Stock Market. The proportion of funds invested in these companies varies between 65 per cent for individuals and 86 per cent by the overseas investors.

More generally the long term trend shows that the percentage of shares held by foreign investors continues to increase while the percentage holdings of individuals is decreasing.

Share Ownership 2004

The following table gives further details of share ownership in the UK:

Unidentified holders have been allocated proportionately across all beneficial sectors

The results of the survey are used to improve the classification of the ownership of shares in the National Accounts and to assign the dividends received to the correct sector of owner.