Executive Mosaic’s GovCon Index staged a second consecutive session of recovery Wednesday from the post-Brexit shock that loomed over global financial markets during the prior two trading days with McKesson Corp. (NYSE: MCK) as the top driver of gains with the prime defense stocks and platform also top performers.
The GovCon Index closed at a gain of 1.868 percent to 77.931 at a mark that nearly halves its losses from Friday and Monday that resulted from investor reaction over Britain’s Thursday referendum to leave the European Union.
Nine of the GovCon Index’s 11 S&P 500 companies added at least 1 percent and the same number of stocks jumped more than $1.00 per share.
McKesson led GCI net gainers for the second straight day and are up 6.12 percent since Tuesday morning’s twin announcements of its agreement with Change Healthcare to form a new jointly-owned healthcare information technology company and plans to divest the enterprise information solutions segment.
Military shipbuilder Huntington Ingalls Industries (NYSE: HII) hit a new 52-week high in the 12 p.m. Eastern time hour after an upgrade on its stock from a “Hold” to a “Buy” rating from Zacks Investment Research on forecasts of “stable financials, return of cash to shareholders, along with a solid budget outlook.”
Prime defense contractors and other platform and technology makers led gains along with Reston, Virginia-based government services contractor Maximus (NYSE: MMS), which ended Wednesday as the GCI’s eighth-best net performer and is also the U.K.’s lead contractor for a disability benefits application program.
U.S. over-the-counter shares in BAE Systems PLC lifted 3.86 percent and have recovered half of losses incurred from the post-Brexit shock, while the British contractor’s stock on the London exchange gained 4.57 percent and has fully reversed its decline from Thursday’s pre-Brexit close.
Top GovCon Index Net Gainers
|Symbol||Company||$ Current Price||Net Change ▴||% Change|
|HII||Huntington Ingalls Industries||164.45||3.60||2.24%|
Top GovCon Index Percentage Gainers
|Symbol||Company||$ Current Price||Net Change||% Change ▴|
|BAESY||BAE Systems PLC||27.18||1.01||3.86%|
*Also listed in the S&P 500 composite index
|Advancing GovCon Index Issues||29|
|Declining GovCon Index Issues||1|
|Unchanged GovCon Index Issues||0|
|Index||Value||Net Change||% Change|
|S&P 500||2, 070.77||+34.68||+1.70%|
|Dow Jones Industrial Average||17, 694.68||+284.96||+1.64%|