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Spread Betting: Admiral is the 'chart to watch' PDF Print E-mail
Written by Sam Coventry   
Wednesday, 24 August 2011 16:46

According to David Morrison over at spread betting company GFT, Admiral could be on the move.



Spread Betting understands that Admiral plc - the insurance provider - is on the move.

David Morrison at GFT - the spread betting company - has the following to say:

"Shares in Admiral fell over 10% today despite the fact the insurer unveiled record profits and hiked its dividend by 20%. Investors were unnerved largely by a big jump in the company’s loss ratio, which rose to 77.5% from 67.8%. The loss ratio measures the amount paid out in claims divided by the funds collected in the premiums. Admiral’s first-half revenues surged 53% to £1.1 billion while profits rose 27% to £160.6m.

"However the markets were expecting £163m in profits. Also spooking investors was a proposal to ban commissions paid to insurers for referring customer to accident management companies."

Looking elsewhere, Spread Betting sees that equities staged a rally in the afternoon following news of a better-than-expected rise in US durable goods orders.

Investors had an extra motive to jump on the bandwagon as the Jackson Hole Economic Symposium kicks off tomorrow. Market players will be scrutinising comments from the Fed officials to decipher any clues on QE3.

But there is nothing on the subject as of yet, so this rally could soon turn on its head. Investors will not want to be overexposed in one direction in case Bernanke disappoints their expectations.

 

Spread Betting Lessons - Cut out the emotion!



Oh, and also a lesson why the Stop Loss is your Friend !