AUS
NZ
UK
CA
USA
IND
Summary
- Several sectors like banking, automobiles, and hospitality may see a severe downfall in their revenues after 31 December 2020 deadline when the EU regulations cease to apply in the UK
- The failure of the deal would bring about a significant loss of business for companies on both sides
- There are many stocks that have been performing relatively well over the past year and would be relatively unaffected despite the withdrawal of the EU regulations
The talks of the collapse of Brexit negotiation time and again has led to fears that a deal may never materialise leading to a no-deal Brexit which many had feared. Several industry groups which have very strong linkages in the EU would be badly impacted if UK were to exit the EU without a deal. When the present government went ahead with the country's formal pull-out from the EU, both parties had agreed upon continuing the deal negotiation process till 31 December 2020. The constant bickering of the negotiators on a number of issues and the lockdown in the UK and most parts of EU as a result of the pandemic severely impacted the negotiation process.
The failure of the deal would bring about a significant loss of business for companies on both sides who are already facing pressure on their bottom lines because of the coronavirus pandemic. Thus, in the new year companies belonging to these industries are highly likely to underperform at the London Stock Exchange for some time more.
Investors would have to focus on sectors which are more domestically driven, and likely to register a good growth coming out of the pandemic ordeal.
- Ocado Group Plc (LON:OCDO)- Ocado group is one of the biggest digital retailers of grocery items in the United Kingdom. The company does not have any retail outlets and sends goods directly to consumer homes its warehouses.
Share performance at LSE (YTD)
(Source- Thomson Reuters)
Ocado Group Plc is one of few companies which was least impacted by the pandemic and the lockdown. The shares of the company were trading at GBX 1,259.50 on the London Stock Exchange on 2 January 2020, after which they traded in a sidewards direction till the month of March before meeting a minor peak on 18 March 2020 when they hit GBX 1,479.50 per share. Thereafter the shares of the company have been on an uptrend and as on 28 September 2020 (12.31 PM GMT+1) they are trading at GBX 2,829.00, gaining 0.32 per cent over the previous day’s close.
- Computacenter Plc (LON:CCC)- Computacenter Plc is a UK based technology company engaged in the business of IT infrastructure servicing, having headquarters in Hertfordshire.
Share performance of Computacenter Plc at LSE (YTD)
(Picture Source – Thomson Reuters)
Computacenter Plc has been performing strongly on the London Stock exchange since the beginning of the year 2020. On 2 January 2020, the shares of the company traded at GBX 1804.00 per share, a temporary weakness was seen there with stocks tracing a low of GBX 935.00 per share on 19 March when the number of pandemic infections started to rise sharply in the country. Thereon the share price of Computacenter Plc has been steadily rising and as on 28 September 2020 (12.31 PM GMT+1) they were trading at GBX 2,340.00 per share, registering a growth of 0.51 per cent over the previous day’s close.
- Games Workshop Group Plc (LON:GAW)- The company is a miniature wargaming product manufacturing company. The company is in the business of designing, manufacturing and distribution fantasy miniatures, metal soldiers and rulebooks.
Share performance of Games Workshop Group Plc at LSE (YTD)
(Source -Thomson Reuters)
The shares of Games Workshop Group Plc have been performing very strongly on LSE since the starting of 2020, except for some weakness in March and April because of the lockdown. On 2 January 2020, the shares of the company were trading at GBX 6,065.00 per share, after the correction that was witnessed in March it has been rising consistently. On 28 September 2020 (12.36 PM GMT+1) the shares have been trading at GBX 10,237.00 per share, higher by 2.67 per cent over the previous day’s close.
- Gamma Communications Plc (LON:GAMA)- Gamma Communications Plc is a UK based integrated communication services provider. Amongst Gamma’s main services include Cloud based highly secure business connectivity services.
Share performance of Gamma Communications Plc at LSE (YTD)
( Picture Source- Thomson Reuters)
The shares of Gamma Communications Plc have been on the uprise on the LSE since the starting of 2020, except for downturn in months of March and April when there was a meltdown in the market sentiments ensuing out of the pandemic. On 2 January 2020, the shares of the company were trading at GBX 1,355.00 after which it hit a minor peak of GBX 1,460.00. Thereafter the shares cooled down a bit and hit a low of GBX 970.00 on 16 March 2020, after moving sideways for a fortnight the shares started climbing again, and as on 28 September, 2020 (12.45 PM GMT+1) the shares of the company were trading at GBX 1,590.00 per share, gaining 2.19 per cent over previous day’s close.
- Petropavlovsk Plc (LON:POG)– There is a gold mining company which though is not domestically focused but because of its country of business is likely to be least impacted by a hard Brexit. Petropavlovsk Plc mines gold in the Far East of Russia, and in terms of gold mining reserves, and resources it controls, it is one of the largest gold mining companies of Russia.
Share performance at LSE (YTD)
(Source -Thomson Reuters)
The shares of POG have been performing exceedingly well since the beginning of the year 2020. On 2 January 2020, the shares of the company were trading at GBX 12.70 per share, after that, a minor dip was witnessed on 19 March 2020, just before the lockdown was imposed in the UK when they traded at GBX 15.34 per share. Thereafter the shares have been on up move and reached a high of GBX 39.80 per share on 29 July 2020 before cooling down a bit. As on 28 September 2020 (12.21 PM GMT+1) the shares of the company have been trading at GBX 33.45 per share, gaining 3.5 per cent over the previous day’s close.
