Home / Financial Report / June 29 Market Close: GovCon Index Extends Post-Brexit Shock Reversal as Primes Lead Surge

June 29 Market Close: GovCon Index Extends Post-Brexit Shock Reversal as Primes Lead Surge

GovConIndexUPExecutive 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
MCK McKesson Corp.* 183.34 6.76 3.83%
HII Huntington Ingalls Industries 164.45 3.60 2.24%
LMT Lockheed Martin 244.08 3.17 1.32%
BA Boeing 126.99 3.10 2.50%
GD General Dynamics 135.63 2.45 1.84%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
NAV Navistar International 11.65 0.82 7.57%
EGL Engility Holdings 20.84 1.07 5.41%
I Intelsat 2.52 0.11 4.56%
BAESY BAE Systems PLC 27.18 1.01 3.86%
MCK McKesson Corp.* 183.34 6.76 3.83%

*Also listed in the S&P 500 composite index

Market Summary

Advancing GovCon Index Issues 29
Declining GovCon Index Issues 1
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 77.931 +1.429 +1.868%
S&P 500 2, 070.77 +34.68 +1.70%
Dow Jones Industrial Average 17, 694.68 +284.96 +1.64%
NASDAQ 4, 779.25 +87.38 +1.86%

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