Debate rages about Britain’s exit from the European Union (EU) and the implications for financial markets and the global economy. Australian investors, however, should focus on micro concerns: whether to buy beaten-up, Brexit-affected stocks.
Wealth management stocks such as UK-based fund manager, Henderson Group, and BT Investment Management, which earns almost two thirds of its revenue in the region, fell more than 10 per cent on Monday. Both have tumbled from their 52-week highs.
CYBG Plc’s Chess Depositary Interests (CDIs) on the ASX were also hammered on Monday. This column has favoured CBYG since its demerger from National Australia Bank in February. It has performed strongly in the past few months after better-than-expected efficiency gains.