In an abrupt move on the London Stock Exchange this morning, shares of London Capital Group Holdings plc (LON:LCG) have increased by 50 per cent after the market open. The company has issued an announcement highlighting that there is no material reason for the move.
The Board of Directors of LCG outlined that the volatility this morning is not a direct result of any material developments. The announcement has also reminded investors that the firm is looking to boost its regulatory capital in the coming weeks in order to take advantage of the new platform that it began offering since the start of 2016.
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London Capital Group Holdings plc (LON:LCG) originally announced its regulatory capital boost intentions late in April. The company launched a redesigned website in the beginning of the year and has committed to invest more to return to growth.
The pretax loss of the firm for 2015 amounted to £14.5 million, which is in part due to the adverse effects of the Swiss franc’s abrupt move in January last year, when a number of brokerages from the industry marked significant losses.
Shares of London Capital Group Holdings are currently trading back at 6 pence per share after earlier this morning reaching as high at 8 pence per share. The firm’s stock is trading 75 per cent lower than a year ago.