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Chart of the week: Brexit’s big winners and losers

 

While negotiations rumble on, who is really being hit hard during the Brexit brinksmanship? Dr Nisha Long, head of cross-border investment research, looks at how specific sectors have fared over the past 18 months.

Last week a government memo was leaked which revealed what they believed the effects of Brexit will be. The study, entitled ‘EU Exit Analysis’, revealed that the UK economy will grow more slowly outside the European Union with growth over the next 15 years could be up to 8% lower than if the UK stayed in the union, through scenarios analysis.

UK equities, in general, have underperformed their regional peers since the Brexit referendum. The chart shows the top five sector winners and the five sector losers on a total return basis, in sterling, of the FTSE All Share Index since the Brexit referendum.

The winners include mining which has produced returns of 107.69%, basic materials at 97.6% and industrial engineering returning 35.3%. On the flip side, the worst performing sectors, in sterling terms, are the traditional income-paying sectors have trailed the most.

This is with healthcare and tobacco appearing in the bottom five, where earnings from UK multinationals have been lacklustre. General retailers have also been hit hard posting negative returns since the referendum. The sector worst hit over this period is utilities, which is down 14.4%, in sterling terms, in the period from June 23 2016 to the end of January 2018.

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