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Screenshot of a breaking news alert e-mail from Q2 2017
Investment bank JPMorgan Chase & Co. (NYSE:JPM) has earlier today conducted a transaction that saw it cut its stake in retail Forex and CFD broker Plus500 Ltd (LON:PLUS) to 5.77%, a filing with the London Stock Exchange has shown.
JPMorgan sold 476,180 shares in the broker on Monday 20, 2015, a transaction that took the shareholding of the bank in the broker to 6,624,699 shares. This share sale comes just several days after JPMorgan provided an update, saying its interest in Plus500 is 6.18%.
The move by JPM contrasts with that by Odey Asset Management, which yesterday increased its stake in Plus500 to 16.27%, after purchasing another 1,795,437 shares. We see that for some investors the low Plus500 share prices provide an opportunity.
Shares in the broker had a very controversial day. At some point in the early afternoon one share was trading for 422p, whereas soon afterwards the share price staged a steep move downwards. At market close, one share in Plus500 traded at 393p, down from the 419p level at close on Tuesday.
Investors are obviously alarmed by the announcements on Plus500 websites, warning clients of the broker about processing delays and account freezes. The announcements have been on for several days already.
Plus500 share price on May 20, 2015. Photo credit: Google Finance.
To view the official filing about the latest JPM transaction with Plus500 shares, click here.