IAP

Formed in 1999 through the merger of Garban and Intercapital, ICAP is now a global wholesale broking business covering derivatives, securities and money markets, providing services to both commercial and investment banks.

The trend for ICAP looks positive in spite of the 12-month price chart showing a period of consolidation. City Index Advisory says: ‘The sideways channel is largely defined between 445p as support level and 547p as resistance. More immediately the short term trend is essentially negative but there is buying interest in the 460p region.’ The firm sees the current price as representing a 20% discount to current fair value and reckons that the technical picture suggests buying into the current weakness between 464p and 455p, with a stop-loss below 445p on an end-of-day basis.

ACTION: BUY ICAP • Target 490p • Stop loss 440p

TIME TARGET: 4 WEEKS