Plus 500 - Back to winning ways

Tuesday, 23rd October 2018 09:12 - by Rajan Dhall

The UK listed broker Plus 500 has had a hard time of late with all the regulation changes, it seems the fortunes have changed as stated in the Q3 trading update.

Highlights:

·    Trading for 2018 is now expected to be ahead of expectations

·    Entered Q4 2018 with positive momentum, benefiting from recently increased volatility

·    Q3 included two months of trading post the implementation of ESMA's new regulations and low volatility

·   Elective professional clients ("EPC") represented approximately 38% of Q3 EEA revenues (Q2: c.20% of EEA revenues)

·     Commencement of share buy back programme of an initial amount of $10m

Asaf Elimelech, Chief Executive Officer of Plus500, stated "Our results for the third quarter continued to show satisfactory levels of trading activity of our Active Customers in comparison to previous years, despite regulatory changes and low market volatility. We now expect to be ahead of current market expectations for 2018."

On the weekly chart below the retracement looked tough and this is welcome news. However, the 1323p level may provide some resistance for a move higher and after that, the 1550p could provide some trouble. Having said that the price is still in an uptrend with the market clearly rejecting the 1200p level a couple of weeks ago. I see the price recovering somewhat but industry pressure still remains. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.