Tech Stocks Rocked By Brexit: FTSE Takes An 8 Percent Dive
Shares in many technology companies took a hammering on Friday as a result of the shock vote in favour of Britain’s exit from the EU.
On European markets on Friday, Nokia was down 8.3 percent, SAP was down 7.5pc, Ericsson -6.6pc, and chipmakers NXP Semi and STMicroelectronics were down 7.2 and 8.3pc, respectively. BT dropped 9.73 percent, Vodafone saw a dip of 3.35 percent and TalkTalk saw its share price dive by more than 12 [erccent
On US markets, most tech stocks were losers. Among them, Alphabet dropped $25.65 to $675.22; Apple shed $2.70 to $93.40; Citrix was down $5.80 at *80.55, and Amazon lost $23.1.
Back in Britain the FTSE 100 fell by more than eight percent, wiping 120 billion pounds (A$219 billion) off of the value of the UK’s top 100 companies, but this later steadied to a drop of 4.5 percent, which is still significant, reflecting a drop overall of about £70 billion.
Analysts said that with the process of the Brexit transition taking up to two years, Britain will probably only leave the EU in 2018.That means years of uncertainty, with tech firms and investors unable to know for sure how regulations will evolve (or devolve) in the UK and the EU.
Venture capitalists widely frowned on the move. “There’s no positive in this,” said Harry Nelis, a London-based partner with Accel Partners. “The question is how negative is the news.”
The UK accounts for about one-third of Europe’s venture-capital fundings.