Broker snap: Debt crisis 'ideal' for IG, says Prime Markets

29th Nov 2011 11:45

Prime Markets recommends buying shares in IG Group, saying that the European sovereign debt crisis creates "ideal conditions" for the spread-betting firm.The group said this morning that it has continued to see high levels of client activity during its second quarter and first half revenues will be 23% higher than last year.Prime Markets says that if shares deliver an end-of-day close at or above the 200-day moving average of 446p, the stock could re-test the October high of 475p within the next two weeks."With market moving sovereign debt news items an almost daily occurrence, IG Group should be able to sustain the current levels of revenue growth, and in the run up to the next trading statement on 13 December, Prime Markets believes that near perfect conditions exist for a retest of October 475p highs in the run up to the Dec trading statement," said head of dealing at Prime Markets, Richard Curr.By 11:44, shares were trading 8.37% higher at 470.1p.BC