Numis (LON:NUM) warned on the impact of Brexit uncertainty on its performance in a trading update issued on Tuesday.
The City broker said uncertainty domestically had continued to affect trading during the financial year.
The statement said:
“UK equity indices have suffered material declines and the domestic political situation has significantly impacted investor sentiment in the UK. As a result the market backdrop has been particularly challenging for our corporate and institutional clients, which has ultimately impacted our trading performance in the first four months of the year.”
Numis said that whilst corporate broking and advisory as well as average fees remain in line with the year before, ultimately, transaction volumes proved significantly lower.
As a result, the AIM-listed broker said it completed approximately 25% fewer deals compared to the first four months during the year before.
Similarly, Equities were also suffering, with Institutional income approximately 25% lower than the same period a year previously.
Alongside domestic political uncertainty, Numis also noted the impact of MiFID II upon its business. However, the financial services company said that they ‘were not materially impacted by the first year of implementation, despite the decrease in institutional budgets since the introduction of the regulation.’
Numis shares are currently down -8.49% as of 13:34PM (GMT).
Tuesday Market News Update
Elsewhere across the markets, shares in Danish jewellery retailer Pandora (CPH:PNDORA) ticked up after the company unveiled a cost-saving initiative for the years ahead.
In the mining sector, BlackRock Diamonds shares (LON:BRD) ticked up after the company announced an “exceptional” diamond recovery.