IG Group Holdings plc (LON: IGG) have seen their shares dip on Thursday morning after the firm reported modest interim revenues.
IG Group is a UK-based company providing trading in financial derivatives such as contracts for difference and financial spread betting and, as of 2014, stockbroking to retail traders. While the majority of the company’s activities are based in the UK, the company has expanded internationally.
Shares of IG Group dipped 4.03% to 661p. 5/12/19 11:45BST.
The FTSE250 listed firm said it expects net trading revenue in the six months to November 30 to total around £250 million compared to the £251 million estimate it made a year ago.
The company noted that it has continued to build the size and quality of the active client base in its core markets, which is the key driver of revenue growth in the medium-term.
IG Group said revenue in its core markets in the first half is expected to be around £210 million, 6% lower than in the same period of the year before, which was reflected in the stock price movement this morning.
The company have seen a drop in client numbers over the past year, as regulators have lobbied to get tighter rules on trading products such as contracts for differences.
In 2018, the European regulator placed restrictions on marketing, distribution or sale of CFDs to retail clients, in order to protect investors from losing more money than they put in, restrict the use of leverage and incentives, and ensure that risk warnings are provided.
IG is set to report its half year results on January 21 next year.
Competitor Numis Securities saw their shares in green, despite the firm reporting a 61% plunge in pretax from to £12.4 million from £31.6 million the year before.
IG have previously alluded to Brexit complications as a obstacle to successful trading and followed the same lines as rival AJ Bell who said earlier in the year that negative market movements and political uncertainties led to a disappointing quarterly update.
The reflection on the overall banking and finance sector was not pleasing, and shareholders will be worried. The speculation from Moody’s Moody’s saw the lowering of the UK banking sector outlook from stable to negative.
