Despite another move higher for oil and a shaky start to the day across the Atlantic, London’s junior market managed to quickly recover opening losses and then spend the bulk of the session trading fractionally in the black. At 4.30pm, the AIM Index was three points higher at 961.84.
- Borders & Southern +94%
- Argos Resources +61%
- ITM Power +15%
- Sunrise Resources -29%
- Destiny Pharma -28%
The pricing is a bit sketchy but Borders and Southern [LON:BOR] appear to have topped the table today, with the share price having close on doubled by the bell. However, that does come with a wide spread and against unremarkable volumes. There’s no formal news here and although we have that reported pivot away from Russia as a fuel supplier to Europe, that in isolation probably can’t justify the move.
Argos Resources [LON:ARG] also fared well, adding 68% by the close. This is however a microcap of a company valued at just £6m and finished with a 25% spread. Again there’s that fervour over energy stocks well away from Russia and with the company’s focus on the North Falklands, it arguably couldn’t be any more distant, but it all seems a bit speculative right now.
A notable mention for ITM Power [LON:ITM], which added 15% on the day but is now up around 80% from those lows of three weeks back. In terms of state intervention to break the link with Russian energy supplies, putting funding behind green initiatives like this will arguably be way more palatable to the electorate than restarting fossil fuel projects…
It was Sunrise Resources [LON:SRES] which found itself at the foot of the table, off 29% following an update this morning. The aggregate mining company has abandoned talks with a potential partner and whilst other replacement options exist, the market clearly found little to cheer here.
Biotech Destiny Pharma [LON:DEST] also struggled, shedding 28% in the wake of news that the company had undertaken a discounted placing. The sell-off matches the discount, with the proceeds being used to continue progress of clinical assets towards stage 3 trials. Arguably the balanced response to the placing suggests shareholders, whilst supportive, understand that there’s still a lot to be done.
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