WINNERS & LOSERS SUMMARY: Gold, Dollar Exposure Rewarded Post-Brexit

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday, following the UK's vote to leave the European Union.
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FTSE 100 - WINNERS
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Randgold Resources, up 15%, Fresnillo, up 11%. The miners were up on the higher gold price, quoted at USD1,311.39 an ounce compared to USD1,265.12 at the London equities close Thursday. The precious metal reached a 2016 record high earlier Friday at USD1,359.19 an ounce.

GlaxoSmithKline, up 1.1%, Mediclinic International, up 0.8%, AstraZenenca, up 0.3%. Large-cap pharmaceutical companies stand to benefit from a weak pound, as much of their revenue is in dollars and other non-UK or European currencies. Sterling was quoted at USD1.3869 at mid-morning, having touched a low it hasn't seen since 1985 at USD1.3227 earlier Friday. However, Mike Thompson, chief executive officer of the Association of the British Pharmaceutical Industry, said the UK's vote to leave the EU "creates immediate challenges" for the industry, and smaller drug shares were sharply lower, including Tiziana Life Sciences, down 19%, Evgen Pharma, down 16%, and Oxford Pharmascience Group, down 13%.
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FTSE 100 - LOSERS
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Taylor Wimpey, down 24%, Persimmon, down 24%, Barratt Developments, 21%. "The debate over what the EU referendum means for the outlook for the UK will last much longer than today, but for now we offer the conclusion that the outcome is bad for housebuilders' shares as the combination of slowing GDP, rising longer term rates and political uncertainty is like Kryptonite for that group of shares," said Liberum analyst Charlie Campbell.

Lloyds Banking Group, down 21%, Aviva, down 20%, Barclays, down 19%, Royal Bank of Scotland, down 18%. The financial services companies had been trading particularly higher in the lead up to the vote. In the week prior to the referendum the sector FTSE 350 banking index was up 12%, however on Friday morning index was down 10%.

International Consolidated Airlines Group, down 19%. The British Airways, Aer Lingus and Iberia parent company issued a profit warning for 2016 after the UK vote. "Following the outcome of the referendum, and given current market volatility, while IAG continues to expect a significant increase in operating profit this year, it no longer expects to generate an absolute operating profit increase similar to 2015," IAG said in a statement. EasyJet was down 19%.

ITV, down 18%. The broadcaster was by far the European media stock most exposed to Brexit risk, with 73% of its revenue coming from advertising, according to Societe Generale, which cut its rating on the company to Sell from Hold.
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FTSE 250 - WINNERS
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Gold miners - Acacia Mining, up 15%, Centamin, up 7.8%, Polymetal International, up 4.8%.
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FTSE 250 - LOSERS
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Banks - Aldermore Group, down 24%, Virgin Money Holdings, down 22%, Shawbrook Group, down 21%.

Housebuilders - Crest Nicholson Holdings, down 22%, Derwent London, down 22%, Bellway, down 21%, Redrow down 14%.

Recruiters - Hays, down 23%, Page Group, down 18%. Recruitment firms earlier had warned of a slow down in hiring in the run up to the referendum.
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MAIN MARKET AND AIM - LOSERS
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Proxama, down 43% at 0.429 pence. The marketing and mobile payment solutions company reported a wider pretax loss in 2015, although revenue rose, as it announced it will raise GBP2 million in a share placing. The company said its pretax loss widened to GBP6.1 million in 2015 from GBP5.9 million in 2014, despite revenue multiplying to GBP2.5 million from GBP650,978. Profit was hindered by an increase in administrative expenses to GBP8.6 million from GBP5.8 million, but revenue was boosted by good progress within the digital payments division. Proxama also said it will raise GBP2 million through the placing of 666.7 million shares at 0.3 pence each. Proxama said the placing price represents a discount of approximately 59% to the closing price of 0.725 pence on Thursday, and certain directors of the company have indicated an intention to invest GBP260,000 as part of the placing.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

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