Referendum fallout: Early winners and losers via graphs

Tom Wilson
24 June 2016

Prime Minister David Cameron has announced his resignation, and the Labour party has called for a vote of no confidence in its leader Jeremy Corbyn.

Here at Moneywise, we’ve collated a few key charts hinting at the winners and losers in the immediate aftermath.

For more information, see our Leave vote: What it could mean for your money, property and investments.


Investors – FTSE 100 plummeted

The UK’s flagship index, the FTSE 100, plummeted 8.7% to 5789 when markets opened this morning, but it has since made a partial recovery.

At the time of writing, the FTSE 100 was trading at 6188, although this is still 2.36% lower than its closing price yesterday (6338), as the graph below shows. 

That said this could be an opportunity for buyers to cash in on value shares.

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Holidaymakers – Sterling has fallen

The pound plummeted within minutes of early voting returns in Sunderland and Newcastle being announced, more than wiping out the huge gains seen yesterday.

The dip to $1.32 is its weakest value against the dollar since 1985, and despite a slight recovery when US markets, it is still trading 7.9% lower against the Greenback.

The graph below details the 24-hour movement of sterling vs dollars.

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The pound also fell against the euro. The graph below details the 24-hour movement of sterling vs euros, now 5.8% lower than its peak last night.

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Retirees – annuity rates and long term gilts have fallen

Hargreaves Lansdown warns that annuity rates have already plummeted in recent years, and today’s news could see them fall further due to cuts in UK government bond yields – although it’s still far too early to know for certain.

That’ll affect the rates people are offered at retirement, and put pressure on company pension schemes.

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Pensions expert Tom McPhail says: “Final salary scheme sponsors (employers) and trustees should brace themselves for some unwelcome news on scheme valuations. If these numbers feed through into scheme liabilities it could exacerbate the deficits, which already exist in many schemes.

“Investors planning to buy an annuity might want to get their skates on; if these numbers feed through into annuity rates I’d expect to see them fall.”

“A 65-year-old today is getting a lower rate than a 60-year-old would have done just six months ago.

“We’re into uncharted territory now so it is hard to predict whether annuity rates have further to fall or how much lower they might go.

“Annuity quotes are typically guaranteed for two to four weeks so investors who are worried about a further drop in rates should get their skates on. As always, make sure you shop around to get the best deal and to secure any enhanced rates you might be eligible for.

Property developers

UK property developers were some of the worst affected companies on the London Stock Exchange today, with several FTSE 100 companies falling by 20% or more.

Persimmon had one of the worst single day figures, falling by almost 27%, implying the company is worth around £1 billion less than it was yesterday – as the graph below highlights.

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Gold investors

Gold prices soared 7.6% after early election results last night, according to gold trading platform BullionVault - as the graph below indicates.

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BullionVault reported higher trading figures between midnight and 2pm than it normally receives in a fortnight.

Gold mining companies also did well, with Randgold Resources’s stock price soaring by 19.6% today.

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