Strategy: What to buy on Brexit.
Taking cue from MKE's FX desk,
- Safe haven proxies like CHF, JPY, USD and gold will surge
- Oil prices would come under pressure...-15%
- Stronger USD
Stocks (under MKE's coverage) that benefit include Venture, Innovalues, ST Engineering, SIAEC, Riverstone, and UG Healthcare.
- Stronger spot gold price
Beneficiaries include gold ETF (GLD US$), miners (CNMC Goldmine & Anchor Resources)
- Lower oil prices
Negative for all oil-related counters including heavyweights Keppel Corp & Sembcorp Marine, service providers Ezion & Ezra, as well as upstream oil producers KrisEnergy, Rex, Ramba, etc.
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