Most Singapore-listed firms not open to Brexit risks: analysts
Pound's "shock fall" in aftermath could prove to be temporary; costs of exit from EU also seen as being overblown
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SINGAPORE-LISTED companies are by and large insulated from Brexit risks except a handful that have operations in the United Kingdom such as ComfortDelGro, City Developments Ltd (CDL) and Ascott, analysts say, noting that short-term volatility in the British pound (GBP) may increase hedging costs and affect forex-translated earnings. The bigger question is what happens to Europe after Brexit, they add.
Britain is set to go to the polls on June 23 to vote on whether it should stay in the European Union (EU) or leave. Risk aversion ahead of the referendum has already taken its toll on equity markets, with the Straits Times Index (STI) chalking up four straight sessions of declines before recovering slightly on Wednesday.
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