(Reuters) -CMC Markets raised its full-year operating income forecast on Monday, citing a strong third quarter driven by improved market conditions, sending the online trading platform's shares up as much as 25%.
The company, which provides trading in more than 12,000 financial instruments, including shares, indexes, foreign currencies, commodities and treasuries, attributed the strong quarterly performance to resilient business-to-business and institutional investor demand.
It now expects net operating income between 290 million and 310 million pounds ($368.8 million-$394.2 million) for fiscal year 2024, up from its previous forecast of 250 million-280 million pounds. Analysts on average had expected an income of 265.3 million pounds for the period, according to a company-compiled consensus.
CMC's shares were up 22.7% to 143.94 pence at 0842 GMT, becoming the top gainer across London's stocks.
Separately, rival Plus500 (LON:PLUSP) said it expects to generate revenue of about $725 million and core profit of around $340 million for the year ended Dec. 31, as efforts to expand into different regions such as Japan and the UAE paid off.
Shares in the Israel-based company moved up 7.5% to 1,782.2 pence, as the figures trounced market expectations.
Trading platforms saw a surge in revenue during the pandemic and in 2022 following Russia's invasion of Ukraine, as market volatility jumped. While 2023 trading was more subdued, a year-end uptick in volatility amid the Middle East conflict has benefited these platforms.
($1 = 0.7864 pounds)