DHAKA: UK shares have remained volatile in the wake of the Brexit vote, while the pound fell further against the dollar after Friday’s record one-day loss.

The FTSE 100 index was down 0.4% at 6,111.42 in morning trade, although the decline was not as bad as some had feared, reports the BBC.

Banks were badly hit, with Royal Bank of Scotland down nearly 9%.

The index had plunged more than 8% at one point on Friday before recovering some ground to close 3.2% lower.

Sterling was trading at $1.3460, down 1.8%, although this was above the low of $1.3228 hit on Friday.

On Friday, the pound had its biggest one-day fall against the dollar, at one stage sinking as low as $1.3236.

The FTSE 250 index, which mostly contains companies that are more UK-focused, was down 2.2%.

In a statement issued before the UK stock market opened, Chancellor George Osborne said the UK was ready to face the future ‘from a position of strength’.

He also indicated there would be no immediate emergency Budget. Osborne said there would still need to be an ‘adjustment’ in the UK economy, but added it was ‘perfectly sensible to wait for a new prime minister’ before taking any such action.

‘Markets seem a little calmer this morning, which we can at least partially attribute to George Osborne's statement,’ said Joe Rundle, head of trading at ETX Capital.

‘After going to ground since the vote, the chancellor’s appearance indicates some much-needed continuity at the heart of government.’

‘Despite the prime minister's resignation and a swathe of Labor shadow cabinet departures, Osborne doesn’t appear to be going anywhere.’

BDST: 1436 HRS, JUN 27, 2016
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