England's World Cup performance affects share prices

03 June 2014

Shares in pub chain operators may fall if England gets knocked out

Recent analysis by Equiniti, the UK’s leading share registrar, has found that the average share price of the UK’s top five listed pub chain operators is affected by England’s success in the World Cup competition. The earlier England gets knocked out, the more significant the fall.

During the 2010 World Cup, where England were defeated during the second round, share prices across the main pub chain operators dropped on average by 8% (7.75%) after three days of trading.

However, during previous World Cups where England made it further through the stages to the quarter finals, share prices were less dramatically impacted – decreasing by 0.42% in 2006 and decreasing by -2.19% in 2002 three days after trading. The weather also appears to have an impact – for example in 2006 when there was a European heatwave, share prices went up marginally even after England exited the competition.

Paul Matthews, Managing Director at Equiniti said: “Leading up to the 2014 World Cup we thought it would be interesting to take a look into the affect England’s performance has on the brewery industry. Looking at the share prices of pub chain operators for 2010, we can see that an early defeat in the competition can put a downward pressure on share prices. There are of course other factors at play, including the weather and the relative time difference between the UK and the host nation. Who knows what this year will bring.”