UK investor confidence at record low - BoS

Latest research revealed that the mood among investors has fallen to the lowest level seen since the the Edinburgh-based bank started compiling its investor sentiment index in March 2013.

BoS said the sharp fall in the index in recent months reflected the increasingly unfavourable feeling towards UK equities.

The sentiment index for UK shares fell to -2.49 per cent in March from +36.49 per cent in the same month last year.

A reading above 0 indicates confidence has improved on the previous month.

The bank noted UK equities had delivered negative returns over three, six and 12-month time periods.

The crude price slump has weighed on the shares of companies in the oil and gas sector while slowing growth in China has affected sentiment towards mining firms and the like.

Markus Stadlmann, chief investment officer at Bank of Scotland Private Banking, said: “Investors tend to focus most of their efforts on domestic markets, so a negative view of the UK equity market suggests an increasingly dour view overall.”

He said as the EU Referendum edges closer, talk of increased market volatility may impact on overall investor sentiment.