Q2’s Winners
In the green camp, precious metals miners Randgold Resources (RRS) and Fresnillo (FRES) are the clear winners with an incredibly bullish first half of the year capped by that surprise Brexit vote that sent the likes of Gold and Silver back up towards multi-month highs. Risk play Anglo American (AAL) has held its own stellar recovery that began back in Q1 while we note the presence of the UK 100 ’s blue chip oil majors which have benefitted handsomely from favourable FX moves in the GBP and USD as a result of the UK’s decision to leave the EU.
Winners & Losers Post-Brexit
The above tables illustrate the extent to which the Brexit vote has been a serious driver for the UK Index blue chips’ performances in Q2. The event has seriously altered the UK’s investment landscape, proving a disaster for many of the more traditional risk plays, yet uncovering a world of opportunity in defensives and stocks that report in US Dollars.
Noted outperformers that aren’t in the top 10 above include the big defensives British American Tobacco (BATS), United Utilities (UU.) and GlaxoSmithKline (GSK). With investors’ nerves surely being tested by Brexit, could sector peers Diageo (DGE), Reckitt Benckiser (RB.) and Imperial Brands (IMT) follow in their footsteps in Q3?
Are the oil Majors BP (BP.) and Royal Dutch Shell (RDSb) set to sail to more favourable climes on a buoyant oil price and beneficial foreign exchange conditions? Does Shire (SHP) still deserve its ‘zero sells’ status? And what does the future hold for the UK Index copper miner Antofagasta (ANTO)? Read on to find out.
