Spread betting: Man and Compass could yield a dividend deal

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The Independent Online

Greece will yet again be the word this week as traders wait anxiously for some much-needed clarity about the situation. If the austerity package is eventually accepted by the IMF and EU, the market is set to rally as we move closer to resolving the debt problems.

That should present plenty of opportunities for spread betters, says Manoj Ladwa, senior trader at ETX Capital.

"The euro is the obvious bet and the volatility could provide plenty of opportunity for traders long or short," he said.

On the corporate reporting front, it's a little quiet this week so there's no real meat to digest. But there are a few firms announcing dividend payments. Stocks often move higher in the days before the announcement so getting into a firm ahead of its dividend news could prove profitable.

Shares which could be in play this week include Man Group and Compass. Man has climbed on vague bid speculation, while Compass is one of the few stocks to benefit from the cutbacks.

Beyond that, punters' eyes will be drawn to the UK's final GDP figures for the first quarter of 2011. They're expected to be 0.5 per cent, as reported in preliminary figures, but any change from this could see the market move significantly.

"Traders should buy or sell sterling depending on whether the figures are better or worse than expected," suggests Mr Ladwa.

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