Stock exchange firm Bats Europe launches UK indices to track the Brexit effect on big companies

William Turvill
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The UK voted to leave the European Union on 23 June 2016 (Source: Getty)

Stock exchange group Bats Europe has launched two new indices to track how Britain’s biggest businesses are being affected by Brexit.

The Bats Brexit High 50 encompasses companies that derive the largest portions of their revenues from the UK, while the Bats Brexit Low 50 comprises the firms with the smallest exposures to sterling.

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Constituents of the Brexit High index include Barclays, BT, Hargreaves Lansdown, the London Stock Exchange Group and Marks and Spencer.

AstraZeneca, HSBC, Old Mutual, Unilever, Vodafone and WPP are in the Brexit Low bucket.

The companies are all drawn from the Bats UK 100 Index, which tracks the top 100 UK-listed companies by market capitalisation.

Bats said that since the EU referendum, the index is up more than 17 per cent. But it said that the companies in the Brexit High area are down five per cent, compared with a 30 per cent jump on the Brexit Low index.

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“The UK’s triggering of Article 50 is expected to lead to fundamental changes in the way businesses and capital markets behave prior to and subsequent to the UK’s separation from the European Union,” said Bats Europe chief executive Mark Hemsley. “We are pleased to provide the marketplace with benchmark indices that are designed to gauge investor sentiment towards UK companies during this critical time.

“We are providing these bellwethers of the British economy through our network of vendors free of charge so that they are readily available to all as we navigate the complexities of Brexit.”

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