Sunday share tips: Housebuilders, banks, Circassia, Belvoir Lettings

Property companies, housebuilders and banks are most in danger from a potential Brexit vote, warned Questor in the Sunday Telegraph, while companies thought to be safer, like precious metals miners Randgold Resouces and Fresnillo have already benefitted, as has Shell. "The vote is so finely balanced, we would not advise taking a position. But moving risk away from banks and housebuilders might be sensible," the column advises. Property groups have lost much ground in anticipation of a potential vote for the UK to leave the European Union as the overseas demand that has driven prices up in recent years is likely to be crimped off, especially in London.

House builders like Galliford Try, Barratt Homes, Persimmon, Berkeley and Taylor Wimpey are down double-digit figures in recent weeks due to a likely deceleration of home buying in the months after a potential Brexit vote. Related sectors, such as building materials, plumbing and kitchen supplies have also been viewed similarly, hitting Marshalls, Ibstock, Wolsely and Howden Joinery. Banks, which are heavily exposed to the housing market, are also caught up in contagion from those worries. Big players Barclays, HSBC, Lloyds and RBS are down and smaller challenger banks, which have a greater reliance on buy-to-let lending have been hit hard, including Aldermore, One Savings Bank and most of all Shawbrook.

Sell shares in Circassia, which is due to release results of a key drug trial before the end of the month and may do so on the day of the 23 June referendum, said the Sunday Times' Inside the City column. This would be a perfect day to release and 'bury' some bad news. The clinical trials in question are for Circassia's Cat-SPIRE treatment for cat fur allergy, which was one of the Oxford-based anti-allergy specialist's lead products when it raised £200m as part of its IPO in March 2014.

If the trial is a success, the potential is not to be sneezed at, with 20% of Americans, for example, suffering from feline allergies. Some analysts see the potential for good trial results company to almost triple the share price, while a bad result is feared to see them lose at least a third of their value. Even though the company has other treatments in its pipeline for hay fever and dust allergies, there is a lot riding on this result - creating a binary bet for investors this week.

For investors who have not sold their shares in advance of the EU referendum, now is not the time to sell, advised Midas in the Mail on Sunday. Markets are very volatile and will remain so for at least another week or two depending on the vote, which can be frightening. But, for long-term investors, a measured approach is probably best. Robust groups producing goods and services in demand should survive and prosper whatever the result, namely global conglomerates like Unilever and Experian, and also smaller firms in areas like IT and digital space.

Looking at specific sectors, with both Ryanair and EasyJet both warning of the dangers of a Brexit vote on cheap flights, both shares could soar if the vote to 'Bremain' wins out. As should London property companies such as Derwent and Great Portland Estates, as well as financial groups like Aviva. The likely further collapse in sterling if a Leave vote is the decision would mean dividends paid in dollars would be worth a lot more to UK investors. Companies who pay out in the greenback include AstraZeneca, Shire, Hikma Pharmaceuticals and Smith & Nephew.

The Mail also advised buying Belvoir Lettings, a defensive share that pays a healthy dividend. Due to the shortage of housing stock in the UK, demand for rental accommodation is expected to remain strong for years. Belvoir is a lettings franchiser that has more than 300 offices around the UK. Franchisees pay an upfront fee and are then responsible for running their own agencies, paying 12% cent of their annual revenue to the Plc parent. Brokers forecast profits to increase almost 60% to £3.8m this year and rising 24% to £4.7m next year, with dividends of 6.8p and 7p pencilled in.

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