Markets have had a rough start to what many had thought would be an inspiring week, as the UK shrugged off almost all remaining COVID restrictions but concerns over the economic impact a sharp increase in cases will have, along with the potential for self isolation periods to impact supply chains and everyday life has left markets in a state of disquiet. The AIM index slipped more than 22 points to reach 1199.25 by the bell, the lowest level seen since early April.
- Sumo Group +40%
- Feedback Plc +13%
- Kodal Minerals +13%
- Shanta Gold -26%
- Quadrise Fuels -20%
Sumo Group [LON:SUM] thundered some 40% higher in the first session of the week, following a takeover offer by the Chinese technology multinational, Tencent. The recommended offer is for 513p per share so the current price of just over 500p may leave a little room on the upside. Will this be sufficient to flush out rival bids?
Feedback Plc LON:FDBK had a good start to the week, adding 12.5% by the bell. News of a new contract win on Friday failed to deliver any support for the stock so this could simply be a case of the news having taken a while to filter through to buy orders. Also need to take into account that this is a £10m company trading on a >10% spread.
A notable mention for Kodal Minerals LON:KOD which also added 12.5% today. A note from gold giant Barrick earlier in the month made some encouraging signals over mining in the Cote d’Ivoire where Kodal has an ongoing project. The last update published just over a month ago was certainly seen as encouraging, but there’s nothing more to read into this – yet.
Shanta Gold LON:SHG was at the foot of the table by 4.30pm, sitting some 26% lower. Investors were left cold by this morning’s updated production plan and Q2 numbers, which push back the expected dates of gold delivery from two sites and investors have hit the stock hard. The share price now sits at levels not seen for 12 months, but with assets here, has the reaction been overdone?
Quadrise fuels LON:QFI also struggled today, dropping 20% although spurious price action on Friday night may go some way to explaining this. There’s no news out today, but on Friday afternoon the departure of the COO was announced. The note itself leaves no cause for concern but Quadrise shares have been under pressure for the last 10 weeks or so, following a strong performance at the start of the year.
