Financial Trading and New IPOs

LONDON, July 4, 2011 -

Glencore’s initial public offering was the largest IPO ever seen on
the London market when it made its debut back in May 2011. However
its performance was ultimately disappointing and its shares
struggled to move beyond its expected launch price of 530 pence.
Joshua Raymond of spread betting provider City Index ( href="www.cityindex.co.uk/">www.cityindex.co.uk/)
weighs up the merits of speculating on new IPOs:

“New IPOs can also be very hard to read,” states the Chief
Market Strategist. “Technically, you simply cannot entertain any
technical analysis on prices as there is no historical price action
to help determine future price trends. This means that one will
most likely be basing research on fundamentals, which may not
necessarily be everyone’s expertise.”

That said, some new IPOs can be fruitful for traders. Mr.
Raymond continues: “One of the most recent and tremendously
successful IPOs is that of fashion retailer Super Group, owner of
the Super Dry brand. The retailer launched an IPO in March 2010 at
a launch price of 502p. By February this year, share prices hit a
new record high of 1898p, rallying some 278% in the space of just
11 months trading as a publicly listed company.”

“But it has not all been one way, and recently its share price
has fallen by some 45% from its February highs, proving just how
volatile new IPOs can be and why timing can be everything.”

Discover up-to-date market insights at:

href="www.cityindex.co.uk/market-analysis/">www.cityindex.co.uk/market-analysis/

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About City Index:

Today more and more individual traders are discovering the
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As a group, we transact in excess of 1.5 million trades every
month in over 50 countries. We provide access to instruments
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betting.

We constantly look to improve the performance of our href="www.cityindex.co.uk/trading-platform/">trading
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result is that our customers benefit from innovative trading tools
with transparent pricing, competitive spreads, and a high standard
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for more on financial
trading.

Contact: Joshua Raymond, City Index, +44(0)20-7107-7002,
joshua.raymond[at]cityindex.co.uk

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