Spread betting group IG found its shares on the wrong end of a bit of market volatility today. The company, whose business benefits from major movements in share prices, reported a 60% rise in first half earnings - in line with forecasts. But its shares slumped 32.25p to 360.25p.
The problem was a concern about a possible slowdown in growth in the second half. Analysts at Citigroup - who incidently have a buy recommendation on the business - said: "Our [full-year] profit forecast of £88m assumes a sharp slowdown in the second half to just 2% growth. This looks pessimistic given the strong sign ups and international growth. That said, we doubt consensus will move dramatically today given costs in the second half (France, Spain, US) without a major revenue contribution from these territories."
IG was the biggest faller in the mid-cap index, but overall the market put in a reasonably positive performance, helped by a recovery on Wall Street after Friday's falls. The FTSE 100 ended 13.7 points higher at 6,215.7, while the 250 was 201.8 points better at 10,031.6.
Property companies were wanted after a positive note from Lehman Brothers, but banks were mixed after Credit Suisse reduced its price targets for most of the sector. But it said Barclays, up 15p to 480.5p, looked an increasingly interesting prospect and its new target of 635p gives plenty of upside.
