In early April we wrote about the impressive number of UK 100 stocks trading at all-time highs – a host of opportunities away from the usual suspects (banks, miners, housebuilders) that clients love to trade. While the UK Brexit vote to leave the EU may have seen the UK Index take a big dive and deliver an impressive recovery (offering great short-term trading opportunities I might add), many of the names discussed at the beginning of Q2 have simply continued an upwards march. They have offered helpful protection and bullish options to those trading equity markets. The safe haven defensives have very much proved their worth.

As we stand, the number of stocks that have posted fresh all-time highs in 2016 has risen from 20% in early April to 24% today. That’s almost a quarter of the UK’s blue-chips having sailed into uncharted territory, with no technical resistance, trading virgin price territory. Furthermore, 17 of these have made their latest high since last Friday’s Brexit vote, just going to show how beneficial they can be within a portfolio to offset the drubbing that financials and property-exposed names got based on the perceived impact of Brexit on our Banks and precious property market. Some of the best performers among the list have literally taken off since last Friday, going almost vertical as investors seek out positive market outperformance and delivering gains of 15% in a week!

Many of this select group aren’t the raciest – some might say boring. But what does it matter if they can deliver positive share price moves to those who like to buy low and sell high? They may not move around by 5-10% each day, but in some cases that’s the beauty – steady gains without undue volatility. They can also be a signal as to where professional investors are positioning themselves for shelter against the Brexit-inspired economic uncertainty that lies ahead. Investing in companies whose goods/services we have no choice but to keep consuming (heat, power, water, drugs/healthcare, cigarettes, alcohol, cleaning products, packaging, etc) and are less exposed to the economic cycle is a way of staying invested without taking as much risk. And they often pay nice chunky dividends too. Bonus!

Just like three months ago, I’m sure readers you will be wanting to know more about the stocks in this fabled list. So to stop teasing and prove what I’m talking about take a look the following trio of long-term charts: British American Tobacco (BATS), Experian (CPG) and National Grid (NH). Impressive are they not? For the other 21 in the list simply sign up to receive our research and you can sample all the other interesting observations and quality information we send our clients every day.

Mike van Dulken, Head of Research, 1 July