Football and beer go hand-in-hand and so it might come as little surprise to learn the average share price of the UK’s top five listed pub chain operators is affected by the England football team’s success in the World Cup
According to analysis by Equiniti, based on the last three World Cup tournaments the earlier England gets knocked the more significant the fall.
During the 2010 World Cup in South Africa, England exited the competition in the second round causing share prices across the UK’s main pub chain operators to drop on average by 8% (7.75%) after three days of trading.
However, during previous World Cups where the Three Lions made it into the quarter finals, share prices were less dramatically affected – decreasing by just 0.42% in 2006 and by 2.19% in 2002 three days after trading.
But it doesn’t all come down to performance as there are other factors at play. The weather appears to have an impact given the example of 2006 when there was a European heatwave and share prices increased marginally despite England crashing out of the competition. In addition, the relative time difference between the UK and the host nation can also have an effect.
Prior to the World Cup kicking off, investors will therefore be hoping England go all the way to the final and for the UK to be hit by a heatwave during the tournament.
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