The FTSE100 avoided a full scale rout, and closed today down just 3% at 6138.69 - higher than it was at the start of this week. This is despite the market falling to 5806 in early trading.
However the FTSE 250 suffered a more significant loss - down 7.19% on the day. European markets also felt the fallout from the EU Referendum vote, with the Dax in Frankfurt down 6.8% on the day - its worst day since the financial crisis in 2008. The CAC in Paris shed 8%, Madrid fell 12% while the Milan stock market was down 12.5%.
Homebuilders and Banking Shares Led Declines in FTSE 100
The biggest faller of the day in FTSE 100 was homebuilder stock Taylor Wimpey (TW.), falling an eye-watering 29.3% on the day. Other major housebuilding stocks suffered similar losses: Persimmon (PSN) lost 27.6% to close at 1520p, while shares of Barratt Developments (BDEV) were down 23.8% to 439.80p. Property development company Berkeley Group Holdings (BKG) fell 21% to 692p.
The impact of Brexit also sent ripples across financial sector in the UK, with banking share suffered heavy losses. Lloyds Bank (LLOY) fell 21%, Barclays (BARC) dropped 17.7% and Royal Bank of Scotland (RBS) was down 18%.
Despite a turbulent day, there were some FTSE stocks that record gains. A gold rally sent shares of gold and mining companies up by more than 10%: Randgold Resources (RRS) gained 13.9% to 7370p and Fresnillo (FRES) was up 11.8% to 1386p. Other defensive stocks, including pharmaceuticals and tobacco companies also finished the day with modest gains.
Will Companies Relocate Staff Out of London?
After the Brexit outcome, there were unsubstantiated rumours of a number of banks planning to relocate staff out of London. Meanwhile, Vodafone (VOD) said it was “too soon” for it to know whether or not the UK’s vote to leave the EU will mean it will have to relocate its headquarters.
Sports Direct International (SPD) on Friday said market volatility and exchange rate movements following the UK's decision to leave the EU are likely to hit purchases it makes from the current financial 2017 year and beyond.