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Shares in the newly merged and renamed interdealer broker TP ICAP (TCAP) are top of the more UK-focused this morning, bulls pushing them to a test of 8.5yr highs. The jump higher comes courtesy of a reassuring – albeit brief – FY trading update regarding performance in Q4 with management suggesting 2016 revenues will be up 12% (4% at constant FX) thanks to growth in all product lines.
Higher volumes derived from bullish investor sentiment towards a Trump presidency (financial sector deregulation in particular coupled with a host of policies to promote US growth) and welcome market volatility amid expectations of further stateside rate hikes is a recipe that continues to buoy financials and brokerage names especially.
Investors are clearly jubilant about current market trends and optimistic that inaugural FY results (pro-forma) and guidance for the new larger broking entity will be encouraging on 14 March. Happy New Year!
Mike van Dulken, Head of Research, 6 Jan
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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