The performance of UK firms that depend on most European sales has deteriorated since the country chose to leave the EU in 2016, according to recent composite data.
A survey of the top 100 companies on the London Stock Exchange generating more than 50% of sales in the EU showed that overall median price trends were down 3.3%, research by FactSet for MarketWatch showed.
For companies that generate less than 50% of sales in the EU the difference was strong – their overall median price trend jumped 47%. FactSet uses the current EU composition, which includes the UK.
The data underlines the multinational composition of the UK index of leading companies, with companies such as GlaxoSmithKline
GSK, + 1.11%
ULVR, + 2.28%
and Reckitt Benckiser
RB, + 1.74%
which derives most of sales outside the UK
Also industry-specific analysis of FTSE 100 (TICKER: UK: UKX) shows that consumer, finance, telecommunications and utilities are the most probably vulnerable to Brexit. This is because these industries all have 50% or more revenue exposure for the EU and underperform the FTSE 100 as a whole.
The data company also searched for the term "Brexit" in conference call transcript of the 67 FTSE 100 companies that conducted interim conference calls between June 15 and September 14. Of these 67 companies, 27 cited the term “Brexit” during the call, and the financial and consumer services industry recorded the highest number. However, FactSet did not disclose whether Brexit was cited as a positive or negative impact of these companies.
John Butters, senior income analyst at FactSet, said: "Looking at the FTSE 100 overall reveals that companies – regardless of industry – with more revenue exposure to the EU and the UK have underperformed since the Brexit vote."  “Both median and average price trends are lagging, which may reflect concerns in the market for a harmful Brexit. This weakness may also reflect differences in expectations of economic growth. ”
Next year, the UK economy is expected to grow more slowly than the eurozone, not to mention the US and China. "The mix of Brexit and the general economic uncertainty prevails," he said.
Separately, State Street announced its latest Brexometer research, which measures the mood of institutional investors in relation to Brexit developments.
Research revealed that two-thirds of institutional investors believe Britain leaving the EU without an agreement on October 31 will have a negative impact on global markets, with 31% expecting "serious implications".
If the UK secures a deal before the deadline set. However, 71% of institutional investors expect this to have a positive impact on the markets.
Jörg Ambrosius, Head of Europe, Middle East and Africa on State Street, said: "It is no surprise that Brexit has a significant impact on the global markets, and although a confirmed decision is unlikely before the eleventh hour, the majority of our customers have considered the different scenarios of their investments and business models. "