Pound And Shares Rise After Scotland Verdict

The pound has strengthened and the FTSE 100 opened 50 points higher following the No vote in Scotland's independence referendum.

Sterling, already pushed up on Thursday by speculation on markets that the Yes vote had fallen short of the majority needed, gained another half of 1% - as high as $1.65.2.

The pound had fallen to a low of $1.60.7 during the campaign.

Banking stocks were among the biggest gainers when the FTSE 100 opened for business, given the end of the uncertainty, though share price rises were tempered by new worries over likely constitutional changes.

Royal Bank of Scotland (LSE: RBS.L - news) (RBS) had warned it would move its headquarters from Edinburgh in the event of a Yes vote - a move that would have cost it millions of pounds in the short term while Lloyds , which owns Bank of Scotland, had said it would have had to move its registered office.

An RBS spokesperson said after the result was confirmed: "The announcement we made about moving our registered head office to England was part of a contingency plan to ensure certainty and stability for our customers, staff and shareholders should there be a 'Yes' vote.

"That contingency plan is no longer required. Following the result it is business as usual for all our customers across the UK and RBS."

Lloyds said it remained committed to Scotland.

Market analysts had warned that a Yes vote could have taken up to 10% off sterling's value and wiped billions of pounds from share prices.

Brenda Kelly, chief market strategist at IG Index, said: "A relief rally is in the making in UK markets ... Key areas to watch will be the banks such as RBS and Lloyds as well as big Scottish firms like Standard Life (LSE: SL.L - news) , Aberdeen Asset Management (Other OTC: ABDNF - news) and Weir Group.

"Investors in these firms will be relieved the management in these firms will be able to devote their time to business performance."

Martin Gilbert, the founder and chief executive of Aberdeen Asset Management, responded to the vote by saying: "UK investors will welcome a reduction in the uncertainty of recent months".

Standard Life said: "We recognise that further constitutional change is very likely following the clear result of the referendum.

"We will consider the implications of any changes for our customers and other stakeholders in our business to ensure their interests are represented and protected.

"As a large company based in Scotland, Standard Life is ready to contribute to this process.

"It is now important that we all move forward with respect and work together constructively in the best interests of Scotland and the United Kingdom."

It was a message that was echoed by Scotland's first billionaire, the entrepreneur Sir Tom Hunter, who refused to tell Sky News which way he had voted.

He said: "It's time now for Scotland to unite. It's time now for the people of Scotland to come back together, show that we can respect each other's differences and work together to let Scotland flourish."

CBI director-general, John Cridland, said: "This is a momentous day for our United Kingdom and this result will be greeted by a collective sigh of relief across the business community".