CMC Markets share price jumps on “significantly higher” half-year profitability

Shares in spreadbetting firm CMC Markets jumped this morning after revealing half-year profits will be “significantly higher” than the previous year.

While the spreadbetter admitted its client base had shrunk over the last six months, it said the rise in profitability proved CMC’s previously stated ambition of focusing on “high-value, experienced clients”.

CMC shares rose over seven per cent in early trades.

A resurgence in CMC’s fortunes follows a similar announcement by rival Plus500 yesterday.

Read more: CMC Markets grows customers despite FCA plans to tighten spreadbet rules

The spreadbetting sector is waiting with bated breath on a decision by European authorities to clamp down on certain trading activities.

Last December, CMC – along with listed rivals IG and Plus500 – saw its shares plummet after the Financial Conduct Authority (FCA) revealed plans for a raft of restrictive measures, including reducing the level of risk customers can be exposed to and banning inducements.

Over the summer, the FCA said it had referred the plans to the European Securities and Markets Authority (ESMA), which will unveil changes in early 2018.

“Regulation remains a key focus for the firm, and despite profitability in H1 2018 being significantly higher than the same period in 2017, the firm remains cautious about the future outlook given the ongoing regulatory uncertainty and the impact, if any, potential changes could have on group performance,” CMC said in today’s statement.

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