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Experts set out investment tips in event of Remain or Leave vote

Published 23/06/2016

Investment experts at Liberum have drawn up a list of stocks they predict will do well for Remain or Brexit
Investment experts at Liberum have drawn up a list of stocks they predict will do well for Remain or Brexit

The EU referendum is already causing dramatic market swings and Brexit fears have sent some shares tanking, but there are stocks that are set to fare well in either outcome of the vote.

Investment experts at Liberum have drawn up a list of stocks they predict will do well for Remain or Brexit.

They picked out broadcasting giant ITV as the top tip to benefit from a so-called Bremain bounce. ITV's shares have fallen by 26% so far this year, but Liberum said it should rally higher as stock markets recover and with the prospect of a rebound in advertising spend.

More generally, it believes construction, housebuilding, leisure and staffing stocks are all "increasingly attractive Remain plays".

Housebuilders have been sent plunging in recent weeks due to worries that Brexit could send property prices falling and impact sales.

Liberum believes Berkeley Group stands to benefit from a so-called Bremain after seeing its shares plunge in the wake of a recent update revealing sales reservations had fallen by a fifth in the run up to the vote.

For its Brexit top tip, Liberum has named Plumb Center owner Wolseley. It makes around 80% of its operating profits from its US business, and a further 10% from Canada , Nordics and Central Europe, so is relatively shielded from UK and EU disruption .

Liberum added it is also "happy to own pharmaceutical, technology and chemicals in the case of Brexit".

Bristol-based Hargreaves Lansdown is betting on banks and financial services firms doing well if the Remain campaign wins, as well as housebuilders, travel companies and airlines.

More widely, it believes retailing, supermarket and leisure stocks could all see a recovery, having been hit in recent weeks by fears for consumer spending amid the uncertainty caused by the vote.

While its list is shorter for those set to benefit from Brexit, Hargreaves said some firms could be boosted by the falling pound, in particular those earning the bulk of their profits overseas.

Danny Cox, at Hargreaves, said: "Vodafone for instance has a huge business on the continent, and whilst the local network might face a Brexit hangover, the value of those European earnings, once translated back into sterling, might well be rather greater."

"Oil and mining companies earn virtually all of their income in currencies other than sterling, so they too could benefit if Brexit happened," he added.

Here are a list of sector tips for Remain, according to investment experts:

:: Housebuilding

:: Construction

:: Banks and financial services

:: Airlines

:: Leisure

:: Staffing and recruitment

Here are a list of sector tips for Brexit:

:: Pharmaceuticals

:: Technology

:: Chemicals

:: Oil and mining companies

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From Belfast Telegraph