Big test for legal sector as UK stocks ride the big dipper
A few months ago we reminded our readers that the health of the legal sector was pretty much determined by the fortunes of the UK and global economies. This was the time when the consequences of the slump in the oil price was beginning to be factored into economic growth forecasts. The price of petrol at the pump was in some way a barometer for the constitution of the sector.
Brexit is a different kettle of fish. There's going to be no shortage of coverage across all channels but if you want to filter out the extremes and take some position on how things in legal are going to shape up over the next 12 to 18 months then Google the FTSE 250. The FTSE 250 is the best domestic gauge on confidence in the UK economy because it includes a lot of smaller UK focused companies. The index fell 14% in the first few trading days following the referendum but at the time of writing had risen 6% from that low.
So things are starting to look a little more settled as confidence returns to the stock market and FTSE 250, ergo investors begin to endorse the UK economy again. It's perhaps worth remembering that the biggest screams on a rollercoaster are always heard on the dips.
How have law firm share prices fared post Brexit vote?
Well we got to say that overall they have pretty much held their own. When banks and house builders have been in free fall to the extent that some suspended trading to provide some respite, the legal services sector has been relatively calm.
Countrywide PLC has been hit hardest but the group has property interests beyond the legal business. The rest of the sector has been pretty robust especially when you consider that some house builders and banks lost a third of their value in the same period. As no sector was spared in the rout we are going to take that as a pretty strong vote of confidence in the legal sector as a whole. Just to underline this Douglas Scott are working on a record number of UK private practice and in-house job instructions. You could do worse than trust a multi-award winning legal recruiter with your next move or hire. Click here to browse our latest roles or if you are hiring why not upload a brief here.
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