Shares in two City trading firms surged yesterday after a pick-up in activity at the end of last year.
In a boost to Tory donor Peter Cruddas, his company CMC Markets said it saw ‘an improvement in market conditions’ in the last few months.
The spread-betting group expects to report operating income of between £290million and £310million for the year to the end of March, up from a previously guided £250million-280million.
That drove shares up 21.6 per cent, or 23.8p, to 133.8p, adding £41million to the 62 per cent stake held by Cruddas and his wife Fiona.
Rival Plus 500, meanwhile, said it generated revenue of £570million and underlying earnings of £270million in 2023 which it said was ‘significantly ahead of current market expectations’.
Boost: CMC founder and chief exec Cruddas (pictured) owns a controlling stake in the spread-betting firm which said it saw ‘an improvement in market conditions’ in the last few months
Shares surged 8 per cent, or 133p, to 1793p.
Brokers at Jefferies said: ‘The trading update implies a strong finish to the year [for Plus500.’
Markets were buoyed at the end of last year by hopes of interest rate cuts on both sides of the Atlantic.
A Hargreaves Lansdown survey published yesterday found investor confidence bounced by 50 per cent in December in the UK and Europe.
CMC sank to a pre-tax loss of £2million for the six months to the end of September.
Shares fell 53 per cent last year and even after the latest rally are only worth about a quarter of their peak 2021 value.
David Fineberg, deputy chief executive, told the FT that retail investor confidence had improved after markets surged late last year on the possibility of rate cuts.
Brokers at Peel Hunt upgraded the stock to a ‘buy’ and noted ‘benefits starting to be realised from the investments made’.
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