Optimism over the situation in Ukraine helped lift sentiment for equity markets globally during the session and the AIM Index was no exception, reaching the bell almost eight points higher at 1045.28.
- Itaconix +35%
- Eurasia Mining +35%
- Boohoo Group +10%
- 88 Energy -66%
- Driver Group -24%
Itaconix LON:ITA topped the board today, advancing 35% by the closing bell. Trade in the £22m chemicals company looked somewhat lumpy and the closing spread did look a little exaggerated. There’s no news out directly, but some read across from sector peers may be lending support.
Eurasia Mining LON:EUA tacked on 33% during the session, with optimism that the situation in Ukraine may be inching towards a resolution lending some confidence for investors in the Russian-focused gold ore miner. The stock remains well down from levels seen at the start of the year however and shareholders ought to be mindful of the fact that the easing of sanctions could still be a considerable time away.
A notable mention for Boohoo Group LON:BOO which tacked on 10% during the session. There’s no specific news here but gains mirror those of peer ASOS and again reflect perhaps a glimmer of hope that the macroeconomic backdrop may be improving a little.
88 Energy [LON:88E] was the day’s worst performer, tumbling a significant 66% by the close. The oil explorer this morning updated the market on its Merlin 2 well in Alaska, with news that the quality of the results were insufficient to warrant a production test. This is arguably the curse of anyone operating in this sector – if it was easy, everyone would be doing it. Further analysis of the results will now be conducted to see if there’s additional potential, but understandably investor sentiment has been rattled.
Driver Group LON:DRV also slipped some 24% on the day in the wake of this morning’s trading update. The company reported a difficult second quarter in the wake of multiple unrelated headwinds, meaning that group profits for the first half are now expected to come in between £300k-£500k, against previous estimates of £1m. Cost saving measures are however being implemented to improve efficiency and with a £3.9m cash balance that should provide some reassurance over the outlook.
