GAIN Capital Responds to the Recent Abnormal Activity in its Share Price

GAIN Capital’s share price has been on a two-day rampage, with the share price increasing by 21% and 10% respectively. When share prices move sporadically, a call from the exchange is expected. GAIN Capital states in a press briefing: “In view of the unusual activity in the Company's stock, the New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term has contacted the Company in accordance with the Exchange's usual practice.”

An online equities portal ‘TheStreet’ upgraded GAIN Capital's status from hold to buy. The reason behind the rapid price movements are unknown, however, the company's fundamentals are in sound position and it has strong growth prospects and revenue increase which would translate into higher profits. In addition, the company is also gaining market share in the FX market.

The share price closed on the 5th at $9.84, hitting an intra-day high of $10.31.

Ronnie Chopra, a London based market analyst said in a comment to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates: “Shares have had a very strong run over the last 12 months, with the shares more than doubling from a low of 4 USD. P/E quite high at 17 for a company in the financial services sector, but profits are increasing as well as revenue and market share. With forecasted increase in profits, p/e will fall and that's why shares are high along with p/e.”

GAIN Capital released an official response to the activity, the company's notification read: “The Company stated that its policy is not to comment on unusual market activity."