A number of local shares have been sold down heavily in the aftermath of Friday's Brexit vote, but few have fallen as sharply as Clydesdale Bank plc (ASX: CYB).
The bank, which was spun-off from National Australia Bank Ltd. (ASX: NAB) in February, fell as much as 7.2% this morning to a low of $3.84. That comes after a 17.5% drop on Friday and a 9.4% decline yesterday, bringing the total loss over the last three sessions to 30.7%.
Henderson Group plc (ASX: HGG) and BT Investment Management Ltd (ASX: BTT) are two other shares which have been smacked by the Brexit vote, losing 29.6% and 26.6% in that time, respectively.
Indeed, Britain's unprecedented decision to leave the European Union has caused enormous uncertainty across global markets, while most suspect Britain itself is headed for a recession. With the British pound also dropping heavily against a basket of other currencies, it's little wonder why companies such as Clydesdale Bank have been hit so hard.
While some investors will see this as an opportunity to buy shares of Clydesdale Bank – particularly given its shares did trade as high as $5.855 in May – more risk averse investors may want to steer clear of the business and invest in companies that are less exposed to the European markets.
