ICAP, (LON:IAP) leading provider of a wide variety of electronic execution, broking, risk mitigation, messaging, and information services to wholesale market participants got a boost in it’s stock price Wednesday as fast moving geopolitical events keep stacking up across the globe providing some juice to a summer of otherwise tamed volume figures.
Bryce Elder from the Financial Times reported that ICAP took on 4.8% to 376.4p Wednesday after UBS took the stock off its “sell” list. Recent volatility looked promising for the interdealer brokers, said UBS, with its own proxy for volumes up 17% year-on-year this month. “Should the September 30th update contain some positive news as data seems to indicate, we think that the shares could bounce hard,” UBS said.
ICAP was recently voted “Overall Interdealer Broker of the Year” in Risk magazine’s 2014 Interdealer Rankings
Shares in the company rallied Wednesday after UBS upgraded the stock from a Sell to Neutral…
Courtesy: Google Finance
Even with the pop on Wednesday, ICAP shares have underperformed the market this year with a decline of 16.65% year-to-date. However, a bright spot came when August volumes were reported earlier this month for ICAP’s EBS FX venue when we got glimmer of hope for recovery as volumes increased by 20% MoM and 9% YoY respectively (see chart below).
To see the original article from the Financial Times, click here.