London’s AIM index has seen a second day of gains, continuing to find support off the back of those dovish signals which are emerging from the Fed, with further gains for the Pound being largely overlooked. By the closing bell, the junior market sat almost four points higher at 843.93.
- Mobile Tornado +45%
- Zanga Iron Ore +37%
- Adams Plc +17%
- Deepmatter -54%
- United Oil & Gas -22%
Mobile Tornado LON:MBT topped the board, up 45%. There’s no formal news here and the spread sits at more than 20%, reflective of the rather lumpy trade which has been reported. There’s no news from the company here, but the share price has more than doubled since the start of the month, with recent media reports also noting the company making strong inroads into Central America. News incoming?
Zanga Iro Ore LON:ZIOC added 34%, extending Wednesday’s gains in another very busy day of trade. That announcement from earlier in the week that Zanga had agreed to acquire Glencore’s stake in its mine for an all-equity deal, as well as reschedule cash financing, has clearly been well received.
A notable mention for investing company Adams [LON:ADA] today, whose share price added 17%. A half year report may have flagged increased losses and also notes that the portfolio value is meaningfully below market cap. Trade was also very thin resulting in the move being within the spread, but clearly there’s some support out there.
Deepmatter LON:DMTR is the day’s worst performance, off some 54% as the company looks to delist and return to private company status. Plans are also to raise £1m in funding before leaving the public market, which could equally serve to give even more investors cause to walk away.
United Oil & Gas LON:UOG was off 22% at the bell. This morning the company provided an update on its Egyptian operations. Whilst noting good drill results, the statement added that production for the year would be below expectations owing to shortfalls in output and also maintenance delays. The question is now whether the correction is overdone, although the 25% rally off lows in early trade may hint that this has already been factored in.