CMC Markets Expands Share Basket to Meet Impact of Work from Home Scenario

CMC Markets, the UK based leading global player in CFD market has revealed the expansion of its share basket yet again. As per latest update from the firm, it has made the move to increase its share basket as the firm hopes to provide its clients with access to trending and growth industries in response to increasing demand from its clients. The ongoing global covid-19 led lockdown has created a scenario of rapid change in work environment as major firms have migrated to working from home for a prolonged duration of time. This sudden but high rate of change in work environment has further expanded an already rapidly growing market for technology providers. This has in-turn created a high need for collaboration tools among both businesses and individuals as the ongoing scenario is likely to extend will into latter half of the year and may be more. To this end, the CFD provider has launched two new share baskets which track any and all behavioural changes which takes place in today’s market by harnessing popularity of remote lifestyle and collaborative technology investments.

The firm has always enforced a practise of regularly consulting with numerous industry experts to better understand the requirements of its clients on trading practises and preferences. In recent months, there are several firms in particular which have experienced an ultra-fast paced growth. One such example is Zoom video whose share value is up by more than 2000% since early February this year, while another firm named Peloton has risen by more than 150% from its March month lows. According to CMC Market’s internal analytics data, these two stocks have continued to see rapid increase in popularity among the firm’s clients with both shares frequently appearing on list of top 30 daily ratings which is great improvement compared to its status as having always remained below top 200 shares until February earlier this year. In the newly created share baskets remote lifestyle shares include companies such as Amazon, eBay, Dominos Pizza Inc and Peloton Interactive, while collaborative tech shares include companies such as DocuSign, Slack, Microsoft, Apple & Zoom. Each of these shares is given a tiered weighting status in order to ensure efficient configuration maintenance at all times by working with business information provider IHS Markit, a leading source of independent valuation services for exchange traded products and custom baskets.

Joe Kunkle – Research Analyst and Portfolio Manager

Speaking on this move, Joe Kunkle – Research Analyst and Portfolio Manager – one of the contributor towards launch of new share baskets said “Recent events have accelerated the speed of major thematic shifts such as work-from-home, and discussions from management across the software space are validating the surge in demand for these solutions as every company scrambles to ensure business as usual in the new environment. This includes having an online presence, a collaborative work environment, network security, modernized digital infrastructure and more”.

Speaking on same note, Simon Campbell – Group Head of Trading at CMC Markets added “There has been much speculation around how different industries will be impacted by the coronavirus pandemic and certainly it will take time to see, however there are some clear obvious innovators. Traders are often the first to identify new opportunities in emerging industries and CMC have seen a large uplift in the volumes for Peloton, Citrix and Zoom Video in recent weeks. As an organisation we pride ourselves on our ability to respond to client demand and as such are excited to be able to allow our clients access to these trending stocks in one trade”.