CMC Markets activity surges as financial markets gyrate
The retention of client income has remained strong, the spread betting firm said
Company
LON:CMCX
CMC Markets PLC is a leading global provider of online retail financial services complete with a comprehensive institutional offering. The company enables clients to trade a broad range of financial instruments through its award-winning Next Generation trading platform, supported by sophisticated charting, competitive pricing and automated execution.
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The retention of client income has remained strong, the spread betting firm said
The spread bet firm said volumes had already been good since the start of 2020
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Peel Hunt analysts said forecasts for the next year assume a material reduction in profitability from the CFD provider
Investments and investor services
“The retention ratio commentary is most impressive,” said analysts at Shore Capital
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The online trading platform now expects net operating incomes to reach £180mln in the full year, higher than analyst predictions of £170mln
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"This time last year we had the uncertainty of regulatory change hanging over the sector and the uncertainty of how clients would react to the changes in minimum margin levels."
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There were mixed messages in Mario Draghi's update on Thursday
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With a slew of corporate earnings and the European Central Bank's policy decision, Thursday will be a busy day of news
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The week ahead includes updates from ITV, Unilever, Rightmove, Diageo, Marston's, IG Group, National Express, GSK and AstraZeneca
The City watchdog this week launched a consultation on potentially preventing the sale to UK retail customers of derivatives products referencing any sort of ‘cryptoassets’
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European regulatory changes, including imposing much lower leverage levels, contributed to the online broker seeing trades falling 6% by number and 13% by value over the year
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Footsie closed up 39 at 7,259, while mid-cap cousin FTSE 250 went the other direction, shedding over six points to close at 19,065
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Investors look forward to a strategy update from Aviva's new boss, meanwhile, they are braced for CMC Markets results after the recent profit warning.
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Asides from the macro news, the Week Ahead also brings the latest quarterly FTSE indexes reshuffle, a strategy update from insurer Aviva, and results from Auto Trader
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Footsie gained around 27 points at 7,418, while FTSE 250 added 234 points at 19,563
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Investors will be looking to see if the breakdown services firm can continue its recent run of good fortune
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Aside from the UK and US data - and Brexit - corporate news in the week ahead will include updates from blue-chip budget airline easyjet and Ladbrokes Coral owner GVC Holdings
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Among a handful of other issues, CMC said its customers were winning too much, but City broker Liberum thinks that bodes well for longer-term revenue prospects
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Revenue is down year-on-year said the spread bet firm
Investments and investor services
The UK's premier stock index finished down nearly 24 points at 6,818