London’s AIM Index made a modest recovery from yesterday’s hulking losses but gains feel a bit half-hearted and the focus will now be on Wednesday’s trade to see if the market is drawing a line under the correction, or if this is more a pause for breath on the way down. At the bell, the index sat just over seven points higher at 1085.47.
- Amur Minerals +64%
- Global Petroleum +61%
- MyHealthChecked +14%
- PCF Group -46%
- Novacyt -22%
We flagged Amur Minerals LON:AMC yesterday following brisk trade either side of the weekend break. This morning the company issued a statement to the market, confirming that it was undergoing talks regarding a potential asset disposal which could be worth as much as £100m, leaving shares to jump 64% on the day. Given that’s well in excess of the company’s current market cap, there’s been another flurry of buying today. There are no certainties that this deal will complete but any such move could prove transformative.
Global Petroleum [LON:GBP ] also surged higher today and whilst there’s no direct news, read across and positive sentiment kept action in the £7m company very brisk. Two way trade has however kept the spread tight. Up 61% on the day – one to watch.
A notable mention for MyHealthChecked LON:MHC. Again, we flagged the stock yesterday as being rather hard done by given those revenue upgrades for the full year and the fact they are plotting a future well beyond COVID testing. The market appeared to catch up somewhat today however, adding 14% by the bell.
PCF Group LON:PCF was the day’s worst performer, off 46% at the bell. Shares in the stock had been suspended since May but were relisted today following the publication of interim results, which had been held back owing to accounting irregularities. Higher expenses impacted profitability and with a reduced loan book, this will act as a drag in performance at least in the near term.
Novacyt [LON:NCYT] was the second worst performer, shedding 22% off the back of its strategy and full year trading updates. Uncertainty over forward demand for COVID testing products and an ongoing dispute with the DHSC are giving investors little scope for confidence, even if there is a commitment to launch a new non-COVID product by Q4 ’22.
