London - UK banks and asset managers led London equity indexes higher on Friday after Scottish voters rejected independence, prompting a relief rally from investors who had been concerned the United Kingdom might break up.
Lenders with strong exposure to Scotland, including Royal Bank of Scotland and Lloyds Banking Group, were up 2 percent to 3.4 percent.
Asset managers Schroders, St. James' Place and Aberdeen Asset Management rose between 1.2 percent and 3.1 percent.
A vote for independence would have raised immediate questions over what currency Scotland would use and its position within the European Union.
Trading volume in RBS was particularly strong, already at its normal 90-day daily average after an hour's trade, contrasting with the broader FTSE 100 on around 40 percent.
The blue-chip FTSE 100 index was up 40.00 points, or 0.6 percent, at 6,859.29 points by 10:02 SA time, trading back up at levels last seen at the start of the month.
Scotland's vote against independence ended a skittish two weeks for the UK benchmark index, which dropped sharply when one poll unexpectedly showed a lead for the pro-independence side.
Engineering groups Weir and Babcock were up between 1.6 percent and 2 percent.
Shares of firms with significant exposure to Britain's North Sea oil industry also rose, with North Sea rig operators Petrofac and Enquest up 1.4 percent and 1.5 percent respectively.
A basket of top Scotland-based stocks on the broader FTSE 350 index also traded higher, with its dozen or so components up between 1 and 3.4 percent.
“The markets were pricing in a no vote... but now that we've got confirmation of that it's going to propel stocks on from here,” Mike McCudden, head of derivatives at Interactive Investor, said.
A 4.3 percentage point drop in the FTSE 100 Volatility Index, which measures the price of options on UK blue-chip stocks, suggested the relief over the vote could set the market up for a smoother ride.
Trading could be choppy in morning trade, however, due to “triple-witching” - when the contracts for stock index futures, stock index options, and stock options expire on the same day. - Reuters