Remain Calm Post-Brexit: Morningstar

Killian Plastow, InvestorDaily

In the aftermath of last week’s ‘Brexit’, Australian investors with a high exposure to UK and broader European markets could take a hit in the short term, says Morningstar – but they should “remain calm amid the volatility”. In a report titled Assessing the Exposure to Brexit, Morningstar noted the impact of the UK electorate’s decision to exit the European Union is still affecting markets. European equities, and particularly UK equities, have recorded significant falls in the past week, said Morningstar.

Morningstar noted that several Australian stocks had “meaningful exposure” to the Brexit backlash, most notably Clydesdale Bank, a regional UK bank spun out from NAB, which is currently listed on the ASX. Clydesdale’s pre-referendum share price of $5.54 dropped 24.73 per cent by close of market 30 June. Additionally, Wesfarmers, Macquarie Group and Henderson were also listed by the report as having considerable exposure to European market volatility.

The rest of this article can be found at investordaily.com.au.