Will UK equities recover after Brexit?
The idea of UK equities coming back into fashion has long been discussed. However, with Brexit negotiations reaching their denouement it may be about to happen. Financial advisers could be sensing a reversal of fortunes in the not too distant future.
According to our survey there has been a significant change in the number of advisers looking to allocate to UK equities – while 65% have decreased allocations over the last 12 months, 40% are now looking to increase allocations over the next 12 months.
The survey was conducted just prior to the US presidential election and to the Pfizer/BioNTech, Moderna and University of Oxford/AstraZeneca vaccine news. It showed 45% of advisers consider “Recovery from Covid-19” to be a distinct investable theme. So renewed interest in UK equities is perhaps unsurprising, given the market has been one of the major regional market laggards of 2020.
On 31 December 2020, the boards of Connells and Countrywide announced that they had reached agreement on the terms of a recommended cash offer by Connells for Countrywide (the Recommended Offer Announcement ), pursuant to which Connells will acquire all of the issued and to be issued share capital of Countrywide (the Acquisition ).
Today, Connells is pleased to announce that it has acquired the entire shareholding of 1,919,995 Countrywide Shares held by Schroder Investment Management Limited ( Schroder ), representing approximately 5.85 per cent. of the existing issued ordinary share capital of Countrywide as at 6 January 2021, being the last Business Day prior to the date of this announcement.
Summary · The boards of Connells Limited ( Connells ) and Countrywide plc ( Countrywide or the Company ) are pleased to announce that they have reached agreement on the terms of a recommended cash offer by Connells for Countrywide (the Acquisition ). · Under the terms of the Acquisition, each Countrywide Shareholder will be entitled to receive 395 pence in cash for each Countrywide Share. · Connells has received written confirmations of support for the Acquisition from Countrywide Shareholders in respect of, in aggregate, 16,751,287 Countrywide Shares, representing approximately 51.03 per cent. of the existing issued ordinary share capital of Countrywide as at 30 December 2020, being the last Business Day prior to the date of this Announcement.
How the 2020 global share slump and recovery ranks in history What is city talk?
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Stocks saw a record crash followed by a record rebound in 2020, creating some disparity between markets, as Duncan Lamont explains.
The global stock market crashed at a record speed in early 2020 (Figure 1).
On its way to a total decline of 34%, it clocked up a 30% loss in just 40 trading days.
This is faster than any global stock market crash in at least the last 48 years that we have daily data on global stock market returns for.
A record breaking rebound
Astonishingly, in the eight months since, it has rebounded by 62%. The losses from this record-breaking crash were fully recovered by 23 August, only five months after the market bottomed and while the global economy was still deep in a quagmire. Since then it has sailed even higher, most recently on the back of positive vaccine news. The global stock market is now almost 8% above its pre-crash peak.