Plus500 rallying with a vow to beat expectations

Spread-betting firm Plus500 had better news for the City on Tuesday after a turbulent summer as it weathered a crackdown on the sector by European watchdogs.

The Israel-based company rode the bitcoin boom this year but its shares are almost 40% down on their August peak.

The shares fell sharply after its founders sold a major chunk of the business. Gaming software company Playtech also jettisoned a legacy stake from a failed takeover of Plus500 in 2015.

Around 9% of its shares are on loan with short-sellers betting on further falls.

Plus500 said third-quarter revenues were down 14% on the same period last year, including two months of new restrictions from the European Securities and Markets Authority, which limit the amount of borrowing punters can use to enhance winnings.

The number of new customers fell by half. But the firm avoided the profit warnings that have hit the likes of IG Group and CMC Markets, aided in part by recent volatility in stock markets and currencies, which has boosted trading after a period of relative calm in markets.

The shares added 9p to 1257p as it said “it now expects trading to be ahead of 2018 market expectations”.