More than £20bn has been wiped off the value of the North East’s top 40 companies in the last year. This reflects the effect that the credit crunch is having on our region.
An approximate total market capitalisation fell from £92.15bn to £69.7bn in June this year. This would show a deterioration of 24.3% and is a clear indication of the effect that the credit crunch is having in the North East.
There were just five companies in the North East that have shown a positive share price return in the six-month period. These are mostly made up of manufacturing companies or work in the oil and gas or energy sectors.
It is certainly now clear that the credit crunch is going to have a major effect on local businesses and there is no more important time to stick together as a region and get through the potential difficult times ahead.
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