London’s AIM Index bounded higher again on Wednesday, adding more than 10 points and outpacing the senior market to close at 1081.03.
- Summerway Capital up 42%
- AFC Energy up 19%
- Chamberlin down 19%
- Mobile Streams down 11%
- Hornby down 7%
Topping the board was Summerway Capital [LON:SWC], which extended yesterday’s impressive gains by adding a further 42%. There’s no fresh news here, but the idea that the company can hit the ground running as it shifts focus is clearly giving investors some cause for excitement.
AFC Energy [LON:AFC] fared well, adding 19% in the wake of news that it had entered into a strategic partnership with ABB. The two are aiming to develop and launch a high power EV charging product, which will be distributed by ABB’s own sales network and sees the role of hydrogen take another step forward when it comes to being an alternative technology for powering vehicles.
Chamberlin [LON:CMH] took something of a beating today after its unscheduled trading announcement just before midday. The precision component manufacturer advised the market that its major customer had cancelled all contracts from January 22nd 2021, leaving the company to reassess its options. This had been flagged as a risk in the November trading update but it appears that the termination may have come sooner than had been anticipated. That’s a harsh blow and to come right ahead of the Christmas break makes matters even worse, leaving the stock down 19% at fresh all time lows.
A series of announcements from Mobile Streams [LON:MOS] this morning failed to galvanise support from shareholders with the stock slipping 11% across the day. Revenues and profits were both hit, but the company notes it is well capitalised and debt free. A partnership agreement will also see the company move into China so on balance there seems to be a lot of positive news here. The downside is arguably exaggerated by the wide spread, making this a stock worth watching.
A notable mention for Hornby [LON:HRN] who appear to have come off the rails somewhat today. A tweet by the model train maker noted that with immediate effect it has paused accepting orders from outside the UK. Citing Brexit uncertainty, the plan is to resume this line on January 4th, but this does appear to flag up a serious issue in its preparedness for the UK’s departure from the EU. Shares slid 7% as a result.