£100bn shares plunge over Brexit

At close of play, more than £50bn was wiped off the value of the UK’s biggest companies.

The FTSE 100 Index closed down 3.15 per cent, falling 199.41 points to 6138.69.

York-based housebuilder Persimmon closed down 27.5 per cent at 1,520p, the region’s worst casualty, as analysts warned that the housing market will be hit hard by the Brexit decision.

Chris Schutrups, ​ The Mortgage Hut MD, said​: “After leaving the EU, we will see a drop in house prices. Although this will make homes more affordable in the short-term, in the longer-term it is likely to lead to a correction of the housing market as the biggest risk to the market is uncertainty and a lack of consumer confidence.”

He added that housebuilders are also facing a shortage of skilled foreign workers ​following the vote​.

Jonathan Hopper, MD of the buying agents Garrington Property Finders,​ said:​ “Without renewed stimulus, Britain’s property market faces a hard reset and a Darwinian future of victims, survivors and predators.”

Bradford-based supermarket chain Morrisons closed down 3.5 per cent per cent at 183p.

British Retail Consortium chief executive Helen Dickinson said a prolonged fall in the value of the pound will affect import costs and consumer prices.

While supermarkets shares were down across the board, a crumb of comfort was offered by Shore Capital analyst Clive Black, who said the vote could cost Aldi and Lidl more to import their products into the UK, which could mean them having to increase prices.

​​Analyst Bruno Monteyne at Bernstein said as a result of the EU referendum German discounters might move capital out of the UK.

“Another potential positive impact of a weaker UK outlook would mean the discounters may allocate capital away from the UK as other markets look more attractive,” he said.

​A recent entrant to the FTSE 100, Bradford-based credit lender Provident Financial saw its shares close down 16 per cent at 2,451p while top-10 Yorkshire PLC Leeds-based International Personal Finance saw 13 per cent wiped off its shares to close at 260.5p.

Analyst ​Daoud Fakhri​ at​ Verdict Financial​ said: “Demand for home finance will inevitably be dented, as consumers react to the uncertainty generated by the vote by postponing major spending decisions.”

Elsewhere in financial services, banks also took a big hit.

Laith Khalaf, ​s​enior ​a​nalyst​ at ​Hargreaves Lansdown​ said: “The Footsie has been bailed out by the ​s​terling collapse, because all its international revenues streams are now worth that much more in pounds and pence.

​“​Financials and house builders are bearing the brunt of the pain, with Lloyds bank being one of the biggest fallers.

“It’s probably safe to say the public sale of the bank is now firmly in the long grass, and the return to full private ownership of both Lloyds and RBS has been knocked off course.​“

The analysts views were mirrored by several experts who said that ​Lloyds Banking Group, which owns the Halifax, and Royal Bank of Scotland could remain part-owned by the taxpayer for years to come after the stock market chaos caused by Brexit.