The AIM Index put in another solid performance on Monday, extending the gains seen on Friday but stalling short of the psychologically important 1,000 level. Across the day, gains were just over 3 points leaving the index at 993.3 by the close.
- Solo Oil up 105%
- Sareum Holdings up 59%
- Plutus Power down 31%
- Scotgold down 21%
- Eddie Stobart up 39%
Solo Oil [LON:SOLO] put in a storming performance, seeing its share price more than double after an update that gave hope regarding a sale process the company is currently trying to undertake in Tanzania. The story could be seen as tangential but investors were quick to cheer the news and volumes were – quite literally – off the charts.
Sareum Holdings LON:SAR added 59% and although there was nothing to support the move, news last week about nearing a US patent approval was arguably not fully factored in. With a £50m market cap, this is no minnow and the price action can hardly be written off as market inefficiency.
Plutus Power [LON:PPG] was the day’s biggest faller, down 31% as the market digested an RNS released just minutes before the close on Friday. There’s a proposed demerger, but this leaves the shell company subject to rule 15. With a market cap of under £500k and a spread of 22% being quoted, the downside risk is further exacerbated.
Scotgold LON:SGZ found itself lagging during Monday too, with over £15m being wiped off the valuation after news of a £3m fund raise was announced. That seems somewhat disproportionate, especially given the upbeat RNS. Shares closed down 21% but trade was however brisk.
A notable mention for Eddie Stobart Logistics [LON:ESL] after the publication of a trading update for an associate company this morning. We flagged this in our morning column, but the RNS indicated that demand for haulage as a result of the COVID pandemic had driven a sharp uptick in profitability at GWSA, of which ESL owns 49%. Full year forecasts were also upgraded leaving Stobart shares 39% higher by the close.
