IG Group points to recovery as trading activity improves

(Reuters) - Online trading platform IG Group <IGG.L> said on Thursday it added more clients and saw improved trading activity in August, signalling a recovery from the impact of tighter trading rules that have weighed on the sector.

The group's shares rose 6% after the trading update, where the company also reiterated its forecast of returning to revenue growth in its fiscal year 2020.

IG, like rivals Plus500 <PLUSP.L> and CMC Markets <CMCX.L>, have been struggling after regulators tightened rules on platforms that allowed anyone with a bank card to make highly leveraged bets on markets via easily accessible mobile phone apps.

The company, however, reported quarterly revenue that was in line with the same period a year earlier, partly hit by restrictions on the sale of some derivative trading products by the European Union's securities watchdog.

In a separate statement, IG said it had identified a preferred candidate to succeed Andy Green as chairman, and named non-Executive Director Jonathan Moulds to the role on an interim basis.

The company continues to target revenue growth for its core business of around 3-5% per annum over the medium term.

Revenue for the three months ended Aug. 31 came in at 129.1 million pounds, compared with 128.9 million pounds a year earlier.

(Reporting by Yadarisa Shabong in Bengaluru, Editing by Sherry Jacob-Phillips and Saumyadeb Chakrabarty)