ASX 200 to continue post-Brexit rally: 9 shares to watch

The post-Brexit rally looks set to continue! Which shares will benefit?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to trade higher again today following positive leads from international markets.

Here’s a recap:

  • FTSE 100 (UK): up 3.58%
  • DAX (Germany): up 1.75%
  • CAC 40 (France): up 2.60%
  • Dow Jones (USA): up 1.64%
  • NASDAQ (USA): up 1.86%

In London, shares continued to rally with the FTSE 100 now trading higher than it was at the close on the evening before Brexit. The London-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also rallied, rising 3.2% each, suggesting today could be a good day for their local counterparts.

Meanwhile, other share markets across Europe and the United States also continued to rebound after Friday’s vicious sell-off, with investors snapping up some bargains and appearing increasingly willing to assume more risk.

Closer to home, the Sydney Futures Exchange is pointing to a 73-point gain at the open, resembling a rise of roughly 1.4%.

Considering the strength of the European markets, shares of businesses such as CYBG PLC CDI 1:1 (ASX: CYB) – or Clydesdale Bank – as well as Henderson Group plc (ASX: HGG) and BT Investment Management Ltd (ASX: BTT) could also be in for a good day.

These three businesses were sold off heavily in the aftermath of Britain’s vote to leave the European Union, but showed signs of resilience yesterday.

Kathmandu Holdings Ltd (ASX: KMD) will also be in focus after it upgraded its full-year earnings guidance. It attributed a better-than-expected gross margin to product newness and promotional activity and expects net profit to be between $32 million and $35 million, compared to previous guidance of $30.2 million as of March (figures in NZ$).

Investors will hope for further gains from businesses such as Burson Group Ltd (ASX: BAP) and Somnomed Limited (ASX: SOM) today. Both companies possess growth and defensive qualities, which is typically sought after in times of heightened uncertainty, with both shares hitting fresh all-time highs yesterday.

Finally, Vocus Communications Limited (ASX: VOC) shares will remain in a trading halt today pending a capital raising, with the shares not expected to reopen for normal trade until Monday.

Motley Fool contributor Ryan Newman owns shares of Burson. The Motley Fool Australia owns shares of Burson. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »