June 24 (SeeNews) - The negative reaction of the Ljubljana Stock Exchange (LJSE) on UK's vote to leave the European Union is not surprising given the fact that most investors were positioning their portfolios for a Bremain vote, an analyst at Slovenia's ALTA Invest, told SeeNews on Friday.
"In the long run, all we can now say is that there will be increased volatility. Partly due to uncertain UK future and also due to possible strengthening of anti-EU parties in other EU members," Matej Simnic told SeeNews.
The benchmark index of the Ljubljana bourse, SBITOP, opened down 1.98% at 682.13 points on Friday and kept on falling, reaching 679.85 points at 11:43 CET, down 2.3% from Thursday's close.
All seven blue chips are currently in red, with home appliances maker Gorenje [LJE:GRVG] the top loser, down 6.2% from Thursday's close.
Simnic, however, explained that despite a general drop some stocks will initially profit from the vote.
"We can expect gains of “risk off” investments, hence, mainly stock related to precious metals. In the long run there could be opportunities in some UK companies which could in future years benefit from lower exchange rates, and opportunities related to current stock market overreaction," Simnic added.