Brexit: does anyone stand to gain?

Defensive stocks and pharmaceuticals, says Lucy Tobin
Chris Gorman/Evening Standard
By Lucy Tobin24 June 2016

A few optimists are putting a positive spin on things. First up, property. Foreign investors have always loved London’s real estate for its “safe haven, well-connected” status. “Brexit makes prime London property a lucrative investment for overseas investors bold enough to take a punt despite the market uncertainty,” says Peter Wetherell, chief executive of his eponymous Mayfair estate agency.

If you’re expecting your two-bed in Putney to benefit, though, think again: foreign buyers will “look at acquiring residential property priced up to £6 million”, says Wetherell. “I expect my phone to be extremely active today.”

Then there’s Ryanair. It sent out a 1am email suggesting Britons should “celebrate Europe!” Backing Remain, Michael O’Leary’s airline said: “To celebrate what we pray will be a big Remain majority, we’re launching a one million seat sale with fares to Europe starting from just £9.99… And if the Leave side do win, then these will be the last low fares the UK will enjoy for a very long time.”

But is Ryanair right? The City is anticipating recession, which will mean airlines have to cut fares to lure cash-strapped Britons. So there’s some good news: fleeing abroad will cost less. Although the sunken pound will mean cocktails will cost a lot more when you get there...

Another Brexit winner? Defensive stocks. When the pound is falling faster than David Cameron’s post-resignation heart rate, investors flee to gold. So shares in the world’s second-biggest gold miner, Fresnillo, were up 11 per cent on the FTSE 100 today, while fellow gold-miner Randgold was topping the market.

And Brexit doesn’t stop people getting ill, so investors are also backing pharmaceuticals — this morning Britain’s biggest drugmakers, AstraZeneca and GlaxoSmithKline, were both trading strongly.

Follow Lucy on Twitter @lucytobin

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