THE SCOTTISH “NO”

FTSE 100 gained already yesterday and today strengths further on the “no” vote majority in Scotland. The result from the referendum shows 55% of Scottish residents voted to reject independence for their country.

The London benchmark index opened with gap this morning around 0,5%. Now it is around 0,7% plus. We have been and we are very optimistic in the following weeks about UK index. We built up quite huge postions in the last two weeks and we are expecting more and more gain further.

In the big picture the FTSE is still lagging compared with other European indices and specially compared with US benchmarks. In September the consolidation was permanent in FTSE, I suppose it was due to this recent referendum which used to be a huge concern for investors. Now it has gone, so the optimism and buying momentum might come back and if it close above the 6,900 historical high level easily could come up to 7,000-7,200 territory.

The BFM Assets Team.