The UK’s departure from the European Union will boost FTSE 100 share prices, according to the results of a January poll by the Personal Finance Society.

The poll results revealed that 42.4% of 170 financial advisers believe FTSE 100 share prices will be boosted by Brexit.

By comparison, 22.9% of financial advisers thought Brexit will not boost FTSE 100 share prices, while the remaining 34.7% indicated they were unsure what the UK’s exit from the EU would mean for investors in the index.

The results come just three days before the UK is set to depart from the EU on January 31.

Personal Finance Society chief executive, Keith Richards, commented: “The Conservative Party’s General Election victory sent the FTSE 100 to its best day in a year, with analysts hailing it the ‘Boris Bounce.’

“The majority of the FTSE 100’s profits come from outside the UK. A weaker pound is beneficial for some British companies who sell their products or services outside of the UK as it allows overseas buyers to get more for their money.

“If the value of the pound falls further, many FTSE 100 companies should therefore receive a boost, and in theory, this should push the share prices up, acting as a hedge against Brexit uncertainty. However, we need to remain mindful that a Brexit deal with the EU has yet to be struck, and any economic optimism we currently feel may be misplaced.

“It is vital that investors speak to a financial adviser to ensure their investment portfolios are capable of meeting their needs.”

The Personal Finance Society is a professional body for financial advisers and has more than 37,000 individual members.

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