London’s AIM Index has again spent the day drifting lower, albeit in a very tight range. Inflationary pressures do seem to be knocking confidence, with the junior market finishing just over four points lower on the day at 1245.49
- Plutus Power +43%
- Phoenix Global Resources +16%
- Lekoil -18%
- Norman Broadbent -13%
- Alien Metals -12%
Plutus Power [LON:PPG] was the day’s biggest gainer as the stock ambled towards suspension as we noted yesterday. Whether that’s short covering or some optimism that the suspension won’t last long remains to be seen, but the stock picked up 43% by the bell. Usual caveats also apply given the very small market cap and the very wide spread being quoted.
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Phoenix Global Resources [LON:PGR] was the day’s second biggest riser, reaching the close to trade some 16% up. Transaction volume was however lumpy and the gains in the context of the recent trending lower seen by the stock leave it looking unremarkable. A comparatively wide spread – symptomatic of the limited number of transactions also risks hiding some gains here.
Lekoil [LON:LEK] was the day’s biggest faller, sliding 18% off the back of this morning’s corporate update, following the termination of the CEO’s contract. This came off the back of a conflict of interest situation and raises governance concerns. The downside here does however need to be put in the context of this being a £7m market cap company and the day’s loss sitting within the spread.
Norman Broadbent [LON:NBB] was also in focus, but today finding itself towards the bottom of the board. Shares in the recruiter lost 13% and whilst this is again within the spread, the stock is now on the way to giving back all those gains it accrued off the back of last month’s well-received results.
A notable mention for Alien Metals [LON:UFO] which today slipped 12% in the wake of the company announcing the termination of an earn-in agreement. However, exceptionally high levels of trade were reported in the stock yet the sell-off was within the spread being quoted at the close. The stock is now below the 1p level for the first time in six weeks and remains in the shadow of that spike to above 3p which we observed in the early days of this note.