Domestically focused UK stocks are mired in gloom

British companies that generate most of their revenues in their home market are experiencing their worst share price performance since they were first hit by the UK’s decision to leave the EU nearly three years ago. The FTSE Local UK index — which measures the performance of listed companies generating at least 70 per cent of their revenue in the UK — is more than 20 per cent lower than it was on referendum day relative to the FTSE 100, which is dominated by companies that operate worldwide. The FTSE 100 index tends to move inversely to sterling, as weakness in the pound helps to boost the value of its members’ overseas revenues. Meanwhile, the FTSE Local UK is more exposed to the nation’s economic prospects.