|Delayed - 06/24 11:35:26 am|
CMC Markets sees upbeat 2021 earnings on robust client trading
|07/03/2020 | 02:44am|
Online trading platform CMC Markets said on Friday its 2021 earnings will exceed the upper end of market consensus, with client trading activity remaining strong in a market rattled by the coronavirus crisis.
"In Q1 2021, the entire business has continued to perform very well, with client trading activity remaining around double that of the same period in the prior year," the UK-based company said.
CMC, whose online trading platforms allow individuals to make leveraged bets on financial markets, said its investment in technology was paying off, attracting and retaining clients during the "extremely high volume periods".
While the CBOE Volatility Index, often termed as Wall Street's fear gauge, has retreated from a peak hit in March, it is still holding well above the levels seen in 2019 as investors assess the impact of the pandemic on global economic growth.
The choppy trade in markets, which started off with a selloff earlier in the year and resulted in a recovery in the last quarter, has proved beneficial for online trading platforms CMC and rivals Plus500 and IG Group.
The company's share price sky-rocketed 94% so far this year, outperforming the 15% drop in the wider FTSE Smallcap Index.
(Reporting by Muvija M in Bengaluru, Editing by Sherry Jacob-Phillips)