It’s been another bruising session for London’s AIM Index with the market falling almost sixteen points or close on 2% to reach 877.35 by the bell, representing levels not seen in almost two years.
- Mysale Group +44%
- Kefi Gold +32%
- Tower Resources +16%
- Cornerstone -56%
- Shield Therapeutics -40%
Mysale Group LON:MYSL topped the board, up 46% by the bell although close on half of this was accounted for by the spread. Orders were thin on the ground and there’s no news here but this small cap stock valued at just £16m has been no stranger to erratic price moves in recent months.
Kefi Gold LON:KEFI also fared well, adding 35% by the bell. This morning the company announced the signing of an umbrella financing agreement regarding its Ethiopian project, followed by news that all its AGM resolutions had been passed. However this move only recovers losses from the last couple of months – is there more upside to be had?
A notable mention for Tower Resources LON:TRP, up 16% by 4.30pm. Last night the company released a financing update driving sharp gains at the open then early this afternoon announced all its AGM resolutions had also been passed in its favour to an admittedly more muted response.
Cornerstone LON:CSFS was the day’s laggard, off 56% at the bell in the wake of its full year results being published this morning. Whilst the note strikes an upbeat tone, it also flags the fact that losses continue to grow off the back of rising admin costs and that there’s less than £300k in the bank account. With this in mind an equity raise in the coming months is seen as inevitable.
Shield Therapeutics LON:STX also struggled, off 40% on the day. A business update, final results and financing update were all provided this morning. Critically a major shareholder has provided a loan for $10m to the company, following the failure of earlier attempts to tap the market for $30m. Given the market cap of £16m – so around $20m – this funding is significant, especially if subsequent moves to flip the debt into equity are realised.
