Bloomberg interview Keith Hiscock on MiFID II Monitor findings

20 Sep 2018 / In the media MiFID II Monitor

In an interview with Bloomberg about the consequences of MiFID II, Hardman & Co’s Keith Hiscock notes that smaller listed companies are struggling to maintain their market presence with the reduction of equity research.

“The total number of recommendations on Europe’s small-cap index has dropped 7 percent so far this year, on track for the sharpest decrease in at least a decade, compared with 4 percent for the large-cap benchmark, data compiled by Bloomberg show.”

Mr. Hiscock explains that the decrease in analyst coverage leads to less stock liquidity, bringing into question the purpose of a listing; “The danger is that liquidity is going to be a lot lower and that many companies are going to say: what’s the point of being in the stock market?” he goes on to add “Investors are more reluctant to invest in companies where, for example, there’s only one analyst covering them.”

Read the full article here