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Shell, BP defy market-sell off on dollar income, dividends

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Business | Mon Jun 27, 2016 7:26pm IST

** Royal Dutch Shell and BP defy a broad market sell-off after Britain’s vote to leave the EU

** Investors cite oil majors’ dollar dividends and income as key attraction points

** A weaker pound makes Shell and BP a cheaper alternative to U.S. peers Exxon Mobil and Chevron

** With dollar-based dividends, which both companies chose due to the underlying oil price, the depreciation of the pound offered automatic gains

** “The oil sector has been the perfect hedge against Brexit,” says Richard Hulf, co-manager of the Artemis Global Energy Fund, which holds shares in Shell and BP

** There is a rotation into energy stocks, particularly into BP and Shell, says Charles Whall, portfolio manager at Investec Asset Management which holds shares in oil majors

** Shell up 2.5 percent after climbing 6.8 percent on Friday BP up 1 percent, touching a seven-month high on Monday after gaining 8.4 percent on Friday

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