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England results to impact FTSE

Jun 01 2010 14:00

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London - England's performances at the football World Cup are likely to be reflected on the London stock market, experts said on Tuesday.

Researchers examining the link between England's results and the FTSE 100 index of leading shares showed that the index generally goes up if the team wins and goes down following a draw or a defeat.

The effect is most prominent after major tournament matches such as the World Cup and the European Championships.

The study was conducted by academics from the universities of Bangor, Leeds and Newcastle.

"Stockbrokers, like everyone else, can be carried away in the depression associated with an England loss at the World Cup," said Professor Robert Hudson, from Newcastle University Business School.

The study conclusions were based on returns from the FTSE 100 the day after 290 England games between 1984 and 2009.

"If England are eliminated from the World Cup early, it may be a good day to look for bargains on the stock market," said Doctor John Ashton, from Bangor University Business School.

An early England exit from the World Cup could have negative business effects on the alcohol, media, leisure and sportswear industries, the report added.

England face the United States, Algeria and Slovenia in Group C.

The month-long tournament in South Africa gets underway on June 11.

  - Sapa

 
 
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