CMC’s shares jump as it raises forecast again after trading volume surge
Trading platform CMC Markets surged in early trading as it boosted its annual earnings target for the fourth time in less than six months.
CMC expects net operating income ahead of market consensus at £219m, and profit before tac of £72.9m.
Shares jumped 16.11 per cent to 156.75 on the FTSE small-cap index.
CMC said: “The group has experienced continued high levels of client trading activity over the period which has been in excess of double that seen in more normalised market conditions in both our CFD and stockbroking businesses.”
“During the Period the retention of client income has remained strong.
Earlier this week, rival IG reported a 29 per cent increase in revenue to £139.8m, and served 101,700 OTC leveraged active clients, a 21 per cent increase.
Market volatility helps platforms like CMC and IG as it leads to more transaction volumes on their websites. It was the third highest quarterly revenue in the group’s history, exceeded only by the last two quarters of 2018.
Coronavirus outbreak – sent global stocks down 10 per cent also fallout between Saudi and Russia
Volatility helps platforms like CMC as it means more transaction volumes on their websites.
Global indices have plummeted into the red in recent weeks, despite promises of large stimulus packages by governments. The coronavirus outbreak has panicked investors into large sell-offs, with a number of companies issuing profit warnings. The fallout between Saudi Arabia and Russia, which sent oil prices crashing, has also done little to quell investors’ fears.
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