UBS Report: UK equities

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UK equities: Which stocks are most exposed to Brexit?

Summary:

  • In our House view Tactical allocation we are neutral on UK equities. Whilst the valuation is attractive, the uncertainties around Brexit and commodities give us low visibility.

  • Under a Brexit deal scenario we anticipate domestic stocks to outperform international stocks, and for FTSE 250 to outperform FTSE 100. Under a no deal scenario we expect the reverse. For investors wishing to take a view on the outcome, we offer one list of FTSE 100 single stocks with high domestic exposure and another with high international exposure.

  • Our preferred strategies within the UK are UK quality and UK diversified dividends, which should perform well under either Brexit outcome.

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