Plus500 expected to remain positive; Homeserve to display reliability on Tuesday

Plus500 Ltd (LON:PLUS) has been one of the happy few that that seen its shares in positive territory through the coronavirus outbreak and on Tuesday will let investors know the effect on trading in the first quarter.

The online CFD broker, whose shares have climbed 29% since the start of 2020, said last month that it has seen significantly increased levels of customer trading activity alongside strong momentum across all financial and operational metrics.

Last week, fellow CFD seller CMC Markets reported better net operating income than expected, which analysts said provided positive read-across for Plus500 and IG Group.

Can HomeServe show reliability

Apart from sending ex-customers regular letter pleading for them to come back, we have heard nothing from Homeserve Plc (LON:HSV) about how it’s doing since mid-November.

However, that will change on Tuesday when the provider of emergency repairs and heating services delivers a trading update.

Through the essential services it provides, the FTSE 250 company is allowed to remain open for business during the coronavirus lockdown – although it is prioritising emergency cases at the moment, with technicians wearing protective gear when visiting customers’ homes.

There is still likely to be some disruption to the business from the coronavirus pandemic and the government lockdown, even though it will still be expected to maintain a level of revenues.

The type of services offered by HomeServe maybe means its income “is more reliable than other businesses”, said analysts at Hargreaves Lansdown.

“To some extent investors will be hoping not much has changed in next week’s full year trading statement.”

The US business is the main growth story for HomeServe, and makes up more than a third of sales, but may be affected somewhat by pandemic developments.