Aside from a brief spell early in the afternoon session, London’s AIM index has spent the day in negative territory and reached the closing bell three points lower at 1230.67
- Bion +30%
- Reabold Resources +24%
- Itaconix -32%
- Metals Exploration -19%
- Tekcapital +11%
Shares in Bion LON:BION came under pressure last week, but have rebounded sharply in today’s trade adding just over 30%. However with limited free float, a 50% spread and a market cap of just £8m, there’s nothing to read into this move.
Reabold Resources LON:RBD tacked on 24%, although this simply reversed losses accrued over the last two weeks. The sustained downside pressure which has prevailed in recent weeks appears to have now abated, although there’s no news behind the move. The stock remains a long way below April’s highs.
A notable mention for Tekcapital LON:TEK which saw its shares add 11% during the day’s session. Portfolio company Belluscura released some positive news regarding production and distribution of its portable oxygen generators this morning, but given TEK’s exposure to the company is equivalent to around 50% of its market cap, this kind of outsized return is to be expected. Belluscura closed up 7%.
Itaconix LON:ITX was the day’s biggest faller with shares shedding 32% by the bell in the wake of this morning’s trading update. Despite demand continuing to remain strong, investors appear to be focusing on the fact that the outlook remains somewhat lumpy, both as a result of supply chain issues and also resellers adjusting inventory as economies reopen post-pandemic.
Metals Exploration LON:MTL was the day’s second worst performer, falling some 19% by the close. This morning’s quarterly update had some positive news in it but the company is saddled by debt so production limitations in recent months have left something of a mark on the performance. The stock has now reversed all the gains of the last quarter.
