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Here’s Why the Scottish Mortgage Trust Shares Surged Higher Today

Simon Mugo trader
Updated 22 Mar 2021

OPEN DEMO TRADING ACCOUNT YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
scottish-mortgage-trust

Shares of the UK’s largest investment trust Scottish Mortgage Trust (LON: SMT) rallied higher today after its main holdings closed higher on Friday. The fund holds big US tech names such as Amazon, Tesla, and Netflix, which have rallied higher throughout the COVID-19 lockdown period.

The tech companies are poised to continue their bullish run given the favourable environment created by the coronavirus pandemic that has seen demand for their services skyrocket while showing no signs of stopping.

Amazon has benefitted immensely as consumers shop online, while Netflix has reaped heavily from people spending a lot of time at home and watching movies. Tesla continues to lead the pack as millennial investors buy the company’s stock looking for quick returns.

Investors are eagerly waiting for September when Scottish Mortgage Trust is expected to release its interim results.

The trust has posted outsized results this year given that it does not own or hold any real estate companies despite its name suggesting that its a mortgage trust, which it really is not!

Scottish Mortgage Trust share price

Tradingview chart of LON:SMT share price 17082020

Scottish Mortgage Trust shares today rallied 1.5% higher to trade at 898.5p having ended the week trading at 885.0p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading