Share prices of the UK’s largest listed contractors continue to suffer in the wake of Thursday’s Brexit poll.
Feeling the pain most acutely are Galliford Try and Balfour Beatty, whose share prices were down 32% and 20%, respectively, at around midday today, from their levels at close of trading on the London Stock Exchange on the eve of the historic vote.
Also suffering amid the ongoing confusion over Britain’s future in relation to the EU are Morgan Sindall, down 17.7% today from Thursday, Kier Group, down 16.5%, Interserve, down 16.5%, and Carillion, down 13%.
There is no doubt it will be a tougher market in which to do business until some certainty is attained in terms of any negotiation access to the EU single market, which remains key, as does flexibility in the labour market– Kim Vernau, BLP Insurance
As the country woke on Friday to the shock result of the vote – polls on Thursday indicated a swing in favour of remaining in the EU – the listed contractors saw their share prices drop steeply as trading opened.
Small recoveries were made during Friday morning but in most cases the downward trend has continued as of today.
"Whilst the industry should not overreact, there is no doubt it will be a tougher market in which to do business until some certainty is attained in terms of any negotiation access to the EU single market, which remains key, as does flexibility in the labour market," said Kim Vernau, chief executive of BLP Insurance.
Vernau said a fall in sterling would make materials from the Continent more expensive, and the uncertainty over the future of labour market flexibility would have a dampening effect.
"The industry now needs to focus on moving forward, united in ensuring both residential and commercial sectors remain attractive as an investment both domestically and internationally," Vernau said.
Image: Balfour Beatty’s share price was down 20% from close of trading on the eve of the poll (image via Balfour Beatty)