London’s AIM Index has spent the entire day in negative territory and whilst there was a modest rally in the last hour of trade, at the close the index sat almost five points lower at 974.91.
- Bowleven +90%
- CIP Merchant +25%
- Morses Club +9%
- Clontarf Energy -21%
- PCF Group -21%
Bowleven LON:BLVN topped the board on Tuesday, adding 90% by the close as the market gave a positive reaction to news that a joint venture partner was likely changing at a drill site in Cameroon. Management hope this will accelerate the final investment decision and subsequent payment of US$25m to the company, which even after today’s gains only has a market cap of around £15m.
CIP Merchant [LON:CIP] was the second biggest gainer, up 25% at the bell. Shares in the company are being delisted tomorrow after a cash offer was agreed in early May. The stock has been trading at a discount to the offer price and hopes of an arbitrage trade have likely bolstered sentiment. However future liquidity may make it challenging for those minority holders to exit.
A notable mention for Morses Club LON:MCL, which added 9% today, taking gains over the last couple of weeks since a delay to the results was announced to more than 120%. Can the upward momentum now be maintained?
Clontarf Energy LON:CLON found itself at the foot of the board today, off some 21% and extending yesterday’s losses in the wake of that disappointing drilling update. The share price is now down 75% on the week.
PCF Group LON:PCF also struggled slipping nearly 21% by the close. That reflects the dilution following the issuance of new shares which were admitted to trading today. This morning’s note also reiterated the idea that a reverse takeover may be in the making, but this evidently did nothing to prop up the share price.
