On January 23, British trading platform CMC Markets saw its shares drop by 10% after its conservative forecast failed to meet investors' heightened expectations set by optimistic projections from industry peers.
The company stated it was on course to achieve its annual net operating income target, despite its competitors benefiting from increased market volatility and heightened client activity.
In contrast, CMC's London-listed counterpart, IG Group, reported a 30% profit increase in the first half, while Plus500 exceeded market expectations for annual revenue last week.
Shore Capital analyst Vivek Raja noted the recent surge in CMC shares had raised expectations for a more positive update and additional details on its collaboration with fintech company Revolut.
CMC's shares plummeted by 9.4% to 240 pence at 0914 GMT, making it the top percentage decliner on the FTSE 250 index.
Companies like CMC took advantage of high trading volumes and market turmoil in 2024 due to uncertainties related to global monetary policy easing and geopolitical tensions.
Speculative trading in assets like cryptocurrencies and commodities, coupled with the potential for tariff conflicts during the Trump administration, contributed to the market's upheaval.
In a concise trading statement, CMC expressed confidence in meeting its cost projection of approximately 225 million pounds ($276.8 million).
(1 pound = 1.2299 dollars)