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The Brexit: What Stocks In Singapore Are Exposed To Britain?

The votes for Brexit have been cast. Yesterday night, Britain held a referendum to decide if it will leave or remain in the European Union.

It’s an event that has captured the attention of the business world. Right now, the votes are still being tallied and the “Leave” camp has a slight lead.

The outcome of the referendum is likely to have an impact on companies with businesses in the United Kingdom. It’s worth noting that there are stocks in Singapore’s market that actually have significant businesses there. Let’s look at some of them.

Blue chip stock Comfortdelgro Corporation Ltd (SGX: C52) is in the list. The company is one of the world’s largest land transport service providers. In the first-quarter of 2016, the United Kingdom/Ireland geographical market accounted for 23% of the company’s total revenue. Comfortdelgro runs bus and taxi businesses there.

Another blue chip stock that is in the list would be real estate developer and investor City Developments Limited (SGX: C09). The company had sourced 16.9% of its revenue from the United Kingdom in 2015.

Outside the blue chip universe, there is Ascott Residence Trust (SGX: A68U), a real estate investment trust that runs hospitality assets such as serviced residences. The REIT, which is under the portfolio of Asian real estate giant CapitaLand Limited (SGX: C31), had earned 13.6% of its total revenue of S$421.1 million in 2015 from the United Kingdom.

Another stock in Singapore with significant exposure to Britain would be GL Ltd (SGX: B16), formerly known as GuocoLeisure. The company is the largest hotel owner/operator in London with more than 5,000 rooms under its banner. Over 90% of its revenue was sourced from the United Kingdom in its fiscal year ended 30 June 2015.

Although all the above companies have exposure to Britain, they are not all exposed to the same degree. The nature of their businesses are also very different. It is important that investors pay attention to the specifics of their investments to better understand the risks that can come in the event that Britain leaves the European Union.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.