The GovCon Index was no exception to the effects of Britain’s vote to leave the European Union on global financial markets Friday as the GCI recorded its worst one-day percentage drop of 2016 by 2.805Â percent to 77.327.
Friday’s plungeÂ brought the GCIÂ from a weekly gain to a five-day loss of 1.175Â percent and cuts theÂ Index’s rise from the start of the year to 7.334Â percent.
By comparison, the U.S. stock market bellwether S&P 500 composite index that contains 11 GCI companies fell 3.6Â percent Friday and entered negative territory on a year-to-date basis at the close.
Bloomberg Television reported this was the worst one-day selloff for U.S. stocks since August.
Shares in British defense contractor BAE Systems PLC plummeted 13.07Â percent in U.S. over-the-counter markets, while the company’s stockÂ on the London exchange fell 4.6 percent.
Raytheon (NYSE: RTN) wasÂ the GCI’s lone bright spot Friday at a gain of 92Â cents, while Lockheed Martin (NYSE: LMT)Â turned downward in the final 10 minutes of trade and closed at a decline of 30Â centsÂ after a peak gain of 1.17Â percent in the morning session.
Northrop Grumman (NYSE: NOC) turned positive for a brief period shortly before 11 a.m. Eastern time before a retreat back into negative as no other GovCon Index stock approached gains duringÂ intraday trade, whileÂ Boeing (NYSE: BA) tumbled 5.26 percentÂ andÂ General Dynamics (NYSE: GD) fell 2.6 percent.
The U.K.’s disability benefits program contractor Maximus (NYSE: MMS) plunged 6.73 percent and CGI Group (NYSE: GIB) declined 6.44 percent as the latter company also has significant exposure in Britain.
|Advancing GovCon Index Issues||1|
|Declining GovCon Index Issues||29|
|Unchanged GovCon Index Issues||0|
|Index||Value||Net Change||% Change|
|S&P 500||2, 037.30||-76.02||-3.60%|
|Dow Jones Industrial Average||17, 399.86||-611.21||-3.39%|