Forex broker IPO of 2016 update: Hirose reaches all-time high, CMC Markets’ shares decline

Forex broker IPO of 2016 update: Hirose reaches all-time high, CMC Markets’ shares decline

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When we compared the stock performances of the four FX brokers that went public in 2016 a month ago, Japanese company Hirose had taken the lead. As we look at the stock exchanges today, we find that Hirose Tusyo Inc. (TYO:7185) continues with its good performance, reaching an all-time high of JPY 1447.00 on Sep 14th, and staging a rise of almost 25% from the first post-IPO day. The shares of CMC Markets (LON: CMCX), on the other hand, have plunged by 16.8% for a month, dropping to GBX 225.00 on Sep 15th and hitting a 6-month low.

Here is how each of the four companies that floated this year ended up yesterday, compared to their first post-IPO day (and a month earlier):

Company nameIPO Date1-Day

 

19 AugChange %19 SepChange %
XTB May 6PLN 12.05PLN 11.20-7PLN 10.20-15.4
BATS Global Markets April 15USD 23.00USD 24.365.9USD 25.8112.2
CMC Markets Feb 05GBX 238.27GBX 276.7016.1GBX 230.10-3.4
Hirose Mar 18JPY 845.00JPY 1067.0026.3JPY 1056.0024.9

X Trade Brokers Dom Maklerski SA (WSE:XTB), a.k.a. XTB, which was the only one among the four companies that came out of the Brexit turmoil with a positive price change in its stocks, saw its shares price dropping by more than 15%. In fact, XTB shares plunged after disappointing H1 2016 results in August and have continued to drop ever since, posting an all-time low of PLN 9.21 on Sep 6th.

Quite the reverse is the situation with US-based Bats Global Markets Inc. (BATS:BATS), whose stock prices have increased by 12.2% after its listing on its own BZX exchange in mid-April this year.

Just a month ago, we reported that CMC Markets’ stock prices soared by more than 16% since its listing on the London Stock Exchange. However, after the company stated that its net income is expected to fall due to low market volatility in a trading update on September the 6, its stock price dropped by almost 13% for a single day and hasn’t recovered ever since.

Commenting on these market moves, CMC Markets’ analyst Peter Lenardos said: “This is a bump in the road — not a detour … The shares are likely to overreact (on the downside). CMC remains a coiled spring that awaits the return of market volatility.”

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