CMC Markets forecasts strong 2021 earnings on robust trading
Online trading platform CMC Markets has predicted 2021 earnings to exceed the upper end of market consensus, as client trading remains strong through the pandemic.
CMC has had a strong year so far as the coronavirus selloff in March helped bolster its income by 93 per cent to £252m in the first quarter.
“In first quarter 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 company said in a statement.
CMC, whose online trading platforms allow individuals to make leveraged bets on financial markets, said it had started the financial year “from a position of real strength”.
It added that investment in technology had contributed to a “consistently strong performance over a sustained period of time.”
Last month the spreadbetting firm said its contracts for difference (CFD) platform had continued to perform well. A seven per cent increase in clients was help by the “extraordinarily high levels of trading activity within the underlying markets and exchanges.”
However it maintained that it has confidence in the business “when market activity becomes normalised”.
A volatile period for global markets, which began with a huge selloff in March, has proved beneficial for CMC and its rivals Plus500 and IG Group.
In April, Plus500 recorded a 487 per cent increase in revenues, which it estimated was around 89 per cent of its full year 2019 revenues.
Shares in CMC Markets jumped 9.35 per cent on open.