London’s AIM Index has started the week on the back foot and has now given back all the gains tacked on early last week. At the bell, the junior market sat down a little over six points at 1259.97.
- Braveheart Investment Group +13%
- Quadrise Fuels +13%
- Tek Capital +10%
- Avacta Group -10%
- Trident Royalties -9%
Braveheart Investment Group LON:BRH had the best run of the day, extending the rally that got underway on Friday in the wake of that placing news. Despite the heavy discounting here, there’s clearly confidence that the use of the funds – to accelerate development of a COVID testing instrument – could yield big dividends for investors. Shares are around 75% up from Friday morning’s low.
Quadrise Fuels LON:QFI continues to forge a path higher too, adding a further 13% by the bell on Monday making it the second biggest riser. Shares are now around 50% up from levels seen last week when the update was given on test results, although investors still may have a while to wait until definitive news is out here.
A notable mention for Tek Capital LON:TEK whose shares have been in for a volatile day. Gains exceeded 10% in early trade after the company published record results for the first half, with highlights including revenues of $14.5m, up from $2.9m a year ago, and pre-tax profits of $13m against $1.9m. Net Assets also grew by more than 50% but enthusiasm was quick to evaporate with the stock finishing the session some 5% lower.
Avacta Group LON:AVCT was the day’s worst performer, shedding some 10% by the bell. The company announced that human trials of a therapy got underway in the middle of last week and the market hasn’t responded kindly to the news, slipping 10% by the bell. There does appear to have been some support emerging during the closing auction, but given the scale of the market opportunity here – along with the company’s involvement in COVID testing – some may ask if the downside is warranted.
Trident Royalties LON:TRR was the day’s second worst performer, off over 9%. The stock is usually thinly traded so a series of lumpy transactions today appears to have caused some disquiet. There’s no news behind the move, but it does unwind gains accrued over the last few weeks.
