There’s more gloom for UK stocks after the country lost its title of Europe’s largest equity market: Bank of America Corp. says investors are most bearish on British shares among major regions.

Even after a partial recovery in British assets following September’s ‘mini budget’ turmoil, a net 25% of fund managers are underweight UK stocks, according to BofA’s latest survey.

While that’s an improvement from last month -- which saw a collapse in exposure to UK assets during the tumultuous 44-day tenure of Liz Truss as prime minister -- it’s larger than the net 23% that are underweight euro-area shares. Just 7% are underweight the US, BofA said.

UK markets slumped in September as plans for an unfunded tax cuts spurred fears of mounting government debt and surging borrowing costs. Markets have stabilized since new Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt reversed the measures, with investors now looking ahead to Thursday’s fiscal statement for more clues on the UK’s economic path.

The FTSE 100 index has outperformed other major markets this year, with pound weakness boosting exporters. The FTSE 250 mid-cap benchmark, however, remains down 17% year to date versus an 11% decline for the Stoxx Europe 600. London’s combined market capital has subsequently fallen behind that of France for the first time, according to data going back to 2003.

The FTSE 250 slipped 0.6% as of 11:30 a.m. on Tuesday after data showed unemployment was slightly higher than anticipated last month.

--With assistance from Michael Msika.

This article was provided by Bloomberg News.