As London loses another listing, analysts are wary of writing off the UK capital

cnbc.com:

LONDON — TUI became the latest company to ditch its share listing in London, as shareholders voted overwhelmingly for the German travel giant to list solely in Frankfurt.

The Hannover-headquartered group's investors voted 98.35% in favor of moving the portion of its shares traded on the London Stock Exchange's FTSE 250 to Frankfurt's MDAX, with the transfer expected to occur on June 24.

TUI has a dual listing between the two cities, but said in a statement Tuesday that the company was approached by various investors last year questioning whether this was still optimal, given changes in the ownership structure of the company's shares and a «marked shift in liquidity from the U.K. to Germany.»

Around 77% of transactions in TUI shares are currently settled via Germany, with the U.K. now accounting for less than a quarter.

«A lot of the liquidity, the volumes, already for quite some time went from the trading line in the U.K. to the trading line in Frankfurt, so on the back of this, we were actually approached last summer by shareholders,» TUI Chief Financial Officer Mathias Kiep told CNBC on Wednesday.

«A lot of comments were about if we were to go to Frankfurt, one, liquidity would be in one pool only. The other point was that a lot said 'then you are more prominent in the MDAX than where you are today in the FTSE 250,' and there were also some comments that [the U.K.] could be a more challenging market environment today.»

U.K. stocks are trading at a considerable discount to the rest of Europe, having suffered an investor flight in recent years. The country's blue chip FTSE 100 index is down almost 5% over the past year, compared to a 5% increase for the pan-European Stoxx 600.

London has also suffered a number of