Spread-better IG Group is an unconventional “defensive” stock — it’s hardly a reliably dull utility, and it’s not a corporate undertaker cashing in on bust businesses. It does, though, flourish in instability. Given economic and market volatility, there is much for IG’s punters to speculate on.
The FTSE 250-listed company reported third-quarter results in March that disappointed the City. Amid quieter market conditions, there was a 5 per cent decline in client numbers. IG’s over-the-counter business — which covers betting on cheaper shares in firms that don’t meet stock exchange requirements, and other commodities and indices not traded on big exchanges — posted an 18 per cent decline in revenues to £218 million.
The stock has suffered accordingly: down from £8.22 in March to £7.22