It’s been a rangebound session for London’s AIM Index, with the market making little overall headway during Wednesday’s session, reaching the close just over two points lower at 1210.67.
- Arrow Exploration +21%
- GCM Resources +21%
- Hornby +11%
- Valirx -18%
- Caspian Sunrise -16%
Arrow Exploration [LON:AXL] topped the board, tacking on 21% by the bell in a flurry of late session trade. This makes for the second consecutive day of elevated volumes in the stock, although again trade looked lumpy. The comparatively narrow spread however suggests there’s no shortage of willing sellers on the way up.
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GCM Resources [LON:GCM] also fared well, adding 21% by the close. There’s no news out to support the gains and trade appears to be lumpy which has driven the stock out to a 15% spread. The gains serve to offset losses accrued in December but in the absence of a formal announcement this looks highly speculative on a company with a £7m market cap.
A notable mention for Hornby [LON:HRN] again, whose investors will presumably be suitably chuffed over the stock’s second consecutive day of gains. This morning the company announced a high profile NED hire which is clearly driving optimism over the digitisation strategy, leaving shares to tack on another 10% although demand does look rather one-sided, so the obvious question to ask: if the rally will run out of steam quickly?
ValiRx [LON:VAL] found itself at the bottom of the board after announcing this morning that it had signed a service agreement with a private, US-based oncology company. The company seems to be following a familiar pattern with the share price finding support ahead of these announcements before being sold off on the “fact”. Today’s 18% decline leaves the stock trading around the levels seen just before Christmas.
Caspian Sunrise [LON:CASP] also struggled, finding itself 16% lower by the bell. Again there’s no news from the company, but political unrest in Kazakhstan is clearly spooking the market. In context the sell-off does just reverse some of those impressive gains seen off the back of the pre-Christmas production update, but with local challenges having the potential to persist – and these being very much centred around the energy industry – this could see further activity in the days ahead.
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