THE sterling pound strengthened slightly on Friday afternoon (Jul 5) as The Labour Party swept to a resounding victory in the United Kingdom general election.
The British currency was trading at US$1.2770, up 0.1 per cent, as at the midday break.
Labour opposition unseated the Conservatives (or Tories) after 14 years, winning at least 326 of the 650 seats in parliament. Outgoing prime minister Rishi Sunak conceded the election.
In a note on Thursday, Swissquote Bank senior analyst Ipek Ozkardeskaya said a Labour win is positive for both UK stocks and the pound.
“Combined with a soft dollar, we could see the end of the Tory rule support the pound, and back a move toward 1.30,” she said.
Closer to home, Singapore stocks with exposure to the UK were mixed.
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Real estate player City Developments (CDL) shed 0.2 per cent or S$0.01 to S$5.32 as at the midday break.
In November last year, CDL acquired a 261-unit freehold project in Manchester for £75.6 million, which grew the group’s private rented sector portfolio to 1,648 operational and pipeline units across Leeds, Birmingham and Manchester.
Dormitory operator Centurion Corporation, meanwhile, rose 0.9 per cent or S$0.005 to S$0.59. The group runs private student accommodation in several cities in the UK – Bristol, Liverpool, Manchester, Newcastle and Nottingham.
Transport group ComfortDelGro, which has been expanding its footprint in the UK and Europe, stayed put at S$1.35.
The group’s subsidiary Metroline in March clinched contracts worth £422 million (S$719.8 million) to run buses in Manchester for five years. In February, another ComfortDelGro unit acquired UK-based transport specialist CMAC Group for £80.2 million.
Real-estate counters Ho Bee Land, CapitaLand Ascott Trust (Clas) and stapled security group CDL Hospitality Trust were also flat at midday.
Ho Bee Land’s counter was unmoved at S$1.86. It has eight current UK projects, which include office and mixed-use developments.
Clas’ stapled securities were flat S$0.87. Its portfolio includes The Cavendish London, a 230-room hotel, as well as four Citadines apartment-hotels in the British capital.
CDL Hospitality Trust has three hotels in the UK, including Hilton Cambridge City Centre, as well as The Castings, a 352-unit built-to-rent residential development. It was trading flat at S$0.95, before the midday close.
