Britain’s centre-left Labor Party won a majority in parliament in the British general election, replacing the Conservative Party, which had been in power for the first time in 14 years. Analysts at the investment bank pointed to stocks and indexes that could benefit from the shift in power between the FTSE 100 and FTSE 250. Good for business.” Manthey and her team chose the FTSE 250 index (which can be traded through exchange-traded funds such as the iShares FTSE 250 UCITS ETF or Vanguard FTSE 250 UCITS), rather than the large-cap index FTSE 100, as their “post-election top choice.” trade”. However, strategists warn that historical data shows returns will be bleak immediately after the election result. “In relative terms, UK markets tend to underperform in the 1-2 months after a Labor victory and 12 million years after the election.” The relative performance is not bad,” they said in a note to clients after the results were confirmed. Swiss bank UBS echoed Citi’s call for a mid-cap index. More broadly, the investment bank’s economist Anna Titareva said the UK market remains “significantly discounted” since Brexit. “Companies with UK sales operations, the FTSE 250 of small and mid-caps, consumer-oriented stocks and housebuilders are all attractive investment opportunities in our view, and few of the stocks on these lists are Substantive changes – perhaps uncertain delivery and timing of more supportive policies despite trends already in place,” Titareva said in a research note to clients on Friday. .FTSE .FTMC 5Y Line Housebuilders Analysts at RBC Capital Markets, led by Anthony Codling, believe stocks have yet to fully price in the impact of the election results ahead of the vote. They said: “Labour has been leading the polls since yesterday’s election, but we believe the housing policies proposed by Labor are not reflected in the share price.” The investment bank put housebuilding giant Taylor Wimpey , Gleeson and Bellway are top of the list as the incoming government is expected to relax planning restrictions to allow more homes to be built. Similarly, analysts at Jefferies believe that “political changes are a major positive for UK housebuilders.” After the election results were confirmed, they reiterated their stock preferences: Taylor Wimpey and Persimmon. Meanwhile, Anglo-South African investment bank Investec named several companies in the housebuilding supply chain as net beneficiaries of political change in the UK. “We highlight brick companies (Forterra, Ibstock and Michelmersh) as having good exposure and positive leverage over them. “We also highlight that SIG, Genuit and Volution look well-positioned to benefit from trends in sustainable construction and potentially increased spending on social housing,” it said in a note to clients on July 5. “”
