Brexit worries? Turkey coup concerns?
Not in the equity markets. And not at online trading leader IG Group.
Shares of the London-based IG Group Holdings plc (LON:IGG) continued their move upward to hit a 52 week and all-time high on Monday, closing the day at £8.45. Intraday, IG shares hit an all-time high of £8.48.
IG’s current share price gives the company a market capitalization of £3.1 billion, or about USD $4.1 billion.
IG’s move up comes in concert with equity markets generally in Europe, the US and elsewhere, which seem to be either ignoring political events (Brexit, Turkey, ISIS attacks…), or deciding that the combined effect of the geopolitical climate will be continued low interest rates and slow growth worldwide – with nowhere for investors to put their money to find return except for the stock market.
However the sudden move upward in IG shares is not timed just to general market conditions. IG Group will be reporting its results for its Fiscal 2016 year on Tuesday morning (IG has a May 31 year-end). IG has already issued a Trading Update indicating that it had a good second half of the year and that reported results will be ahead of expectations.
But what we think is driving IG shares upward is the anticipation from investors to hear something (very) positive in tomorrow’s announcement about how IG’s Fiscal 2017 first quarter has gone. Fiscal Q1 is now more than half over at IG, and it included the very heavy trading action around the Brexit referendum,
Should make for an interesting announcement tomorrow. Stay tuned to LeapRate for all the coverage and analysis of IG’s earnings announcement tomorrow.