Market falls cause pain for Stanley
SHARES in broker Charles Stanley tumbled yesterday as the City firm became the latest to suffer from the extreme market volatility.
The company fell 25½p to 245p, as it warned profit had been hit by the woes of the past two months.
The biggest area affected was its securities business. The collapse in volume meant it had earned far less in commission on share trading, echoing the experience of rivals Collins Stewart, Panmure Gordon and Hawkpoint.
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It also said inflation was taking its toll by lifting costs. As a result pre-tax profits are expected to be below the £7.3million made for the six months to September last year.
“Since July 29, global stock markets have continued in the face of extremely strong macroeconomic headwinds to be volatile,” the broker said in a statement. However, it added there had been a “solid performance” from its private client and financial services arms had helped to bolster revenues.
Shares in Charles Stanley tumbled yesterday as the City firm became the latest to suffer from the extreme market volatility
“Whilst in these difficult market conditions the group continues to see the opportunity for growth in the year ahead,” Charles Stanley said.
Smaller rival Numis was more upbeat, however. It said revenues would be up 45 per cent for the six months to September, as it benefited from rights issues and more work in mergers and acquisitions.
