The AIM Index pushed beyond that psychologically significant 1,000 level during Monday’s session, adding a further seven and a half points to close at 1007.11.
As was seen last week, the latest vaccine news proved negative, with the index falling as blue chips jumped higher, but the losses were recouped by the close.
- Block Energy up 43%
- Ncondezi Energy up 30%
- Tricorn Group down 27%
- Tomco Energy down 24%
- Remote Monitored Systems down 15%
An operational update from Block Energy [LON:BLOE] pushed the company to the top of the leader board during Monday’s trade, adding 43% by the close. The news contained a series of green lights with regard to the well and also positive news over the company which has agreed to buy the gas. With political risks and the threat of further COIVD delays this isn’t necessarily a case of calm waters ahead, but investors were ready to cheer the news.
Ncondezi Energy [LON:NCCL] found itself as the second biggest gainer, following news of an accelerated development budget. This project is still in relatively early stages however with completion not due for at least another three years, so will the 30% jump be left looking premature?
At the other end of the board, Tricorn Group [LON:TCN] – the tube manipulation specialist – fell 27% during Monday’s trade. They issued a post-period end update before the opening bell. Following the appointment of a new FD, various matters have come to light including previously undisclosed balance sheet exposure. Trading has been tough this year, cash is running out and although demand is picking up, investors are clearly jittery. The sell off is arguably exaggerated by the close on 20% spread being quoted and the low market cap.
Tomco Energy [LON:TOM] was another casualty of news during the session, with a £3.5m placing taking a toll on the share price. However, given this has doubled the market cap of the company, once dilution effects are stripped out the position looks somewhat different.
A notable mention for column regular Remote Monitored Systems [LON:RMS]. This morning they announced a production agreement for antiviral masks with a German company, ensuring demand can be met and providing fresh enthusiasm for the shares. 7p was tested, some 14 times higher than the share traded at just a month ago, before settling at 4.2p, down 15% on the day. This is an interesting company – although we may be close to containing COVID, the idea that materials can be produced with such high efficiency in killing viruses has the potential to offer relevance for the business for a long time to come.