Stocks to watch post-referendum

Now that the question of Scottish independence has been put to bed, let’s look at the reaction of Scottish stocks to the ‘No’ vote. 

An RBS branch
Source: Bloomberg

Royal Bank of Scotland Group, Lloyds, Standard Life and Aberdeen Asset Management are all trading higher following the ‘No’ vote. RBS is the biggest gainer on the FTSE 100, and shortly after the result hit the news wires the bank scrapped its plans to relocate its headquarters to London; Standard Life also made a similar commitment to Scotland. Prior to the referendum, Aberdeen Asset Management stated it will be business as usual regardless of the result and Lloyds, despite its large exposure to Scotland, is already headquartered in London.

RBS is trading at £3.68, up 3.1% on the day, and the stock is receiving support from the 50-day moving average of £3.46. This morning the stock hit £3.72, but there is a sense it could drop more as profit-taking sets in.

Lloyds is in a similar position as the stock, at the time of writing, was trading at £0.765. The stock managed to reach the 200-DMA of £0.78 but has pulled back since, and it could fall to £0.72.

Standard Life has been the least sensitive of the Scottish financials to the referendum. The share price is at £4.22 and it has bounced off the £4 level a few times recently. I suspect it will remain rangebound in the short term.

Aberdeen Asset Management is trading at £4.35 after profit takers hit the share price. If the price drops below the 200-DMA of £4.30 the next level to watch is £4.10.

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