Macquarie Group (MQG) is Australia’s largest investment bank, and is a leading provider of banking, financial advisory, investment, and funds management services.
It is also one of the main blue chip stocks in the share market.
MQG recently advised that it expects a 25% drop in 1H11 earnings from a year ago due to weak trading conditions in most of its markets.
MQG advised that activity was being hampered at its Securities, Capital and Fixed Income, Currencies and Commodities divisions, and that uncertain conditions were making short-term forecasting difficult.
Despite the downgrade, MQG maintained that FY11 earnings are expected to be broadly in line with FY10 assuming more normal market levels.
MQG shares slumped 4.7% following the announcement, and it will remain as one of the stocks to watch in coming months given that further profit downgrades cannot be ruled out.