It’s been a relatively quiet day for the UK stock market and share prices so far today. Among the biggest fallers are shares in Barclays PLC (LON:BARC) (LSE:BARC.L), which are down 0.8% at 230p. Barclays has been in the news this week as it is apparently going to use Dublin as its EU headquarters.
In my view, Brexit is bound to have at least some impact on where financial services firms are located. Even if the UK agrees on a deal regarding the single market/passporting, the uncertainty of Brexit could make banks such as Barclays take a lower risk option.
Still on Finance, shares in Prudential plc (LON:PRU) (LSE:PRU.L) and Standard Chartered PLC (LON:STAN) (LSE:STAN.L) are down 1% and 0.8% respectively. I’ve been reading rumours recently Prudential could split in order to better service the world’s ageing population. I think it’s a sound business which has long term investment appeal due to its exposure to a rapidly growing Asian economy. For that same reason, I’m optimistic about Standard Chartered’s share price outlook.
J Sainsbury plc’s (LON:SBRY) (LSE:SBRY.L) stock is down 2% today. This could be because of Tesco’s news, since it could mean greater competition within the wider food retailing space. I feel Sainsbury’s acquisition of Argos will be a good move in the long run, but I’m unsure about how strong consumer confidence will be this year. So I’m less optimistic about Sainsbury’s investment outlook than for Tesco.
Also among today’s biggest share price fallers is AstraZeneca plc (LON:AZN) (LSE:AZN.L). Its stock is down 2.3%. AstraZeneca is due to report next week. I’m optimistic about its investment outlook. It is forecast to return to growth within the next couple of years and has the financial resources, I feel, to make more acquisitions in FY2017 and FY2018. Therefore, I think its share price should be fine on a relative basis.