British stocks expected to soar following Olympic Games

Equity investors wishing to cash in on the London Olympics can take their pick from British hotels, advertisers or retailers — history suggests the FTSE 100 could shine in the following 12 months.

The past five games saw the host nations’ stock markets outperform the MSCI global benchmark by an average of 16.4% over the year following the event, research from Saxo Bank shows.

“The local index tends to outperform the other indices... just basically from the publicity the country receives,” said Mathieu Bolduc, equity analyst at Saxo Bank and author of the report.