London’s AIM Index has started the week very much on the back foot, with ongoing concerns over the Fed’s potential to hike interest rates along with that mounting threat of a Russian invasion into Ukraine serving to weigh heavily ontavistock markets globally. London’s junior bourse reached the close down by more than 19 points at 1064.88
- Tavistock Investments +25%
- Premier African +23%
- Kibo Energy +22%
- Zoltav Resources -30%
- Empire Metals -17%
Having made big gains off the back of news that a proposed acquisition was being called off last week, Tavistock Investments LON:TAVI saw that upside momentum continue through Monday’s session. Shares added a further 25% by the bell, although there did appear to be a shortage of willing sellers, driving the spread out to more than 16% as a result.
Premier African LON:PREM saw another leg-up today, adding a further 23% and taking gains since the start of the month to more than 160%. Assay results from last week were well received at the time and with more detail due here, is this a case of optimism building that further good news is imminent?
A notable mention for Kibo Energy LON:KIBO which also fared well, up 22% by the bell. This morning the company updated the market with news of a 10 year agreement on a waste to energy project in South Africa. In addition to the valuable environmental impact this should make, the project will also deliver an IRR of 11%-14%, guarantees revenues throughout the tenure and also has the potential to see significant expansion within the first 2-3 years.
Zoltav Resources [LON:ZOL] was the day’s biggest faller, off 30% at the close, but this is arguably nothing more that a statistical outlier. With only one trade appearing to have been reported, the stock ended up sitting on a crazy spread. Clearly as a Russian business they could be caught up in any sanctions depending how the Ukraine situation plays out, but until a bit more liquidity is seen here, there’s not much to say.
At the close, the second biggest decliner was Empire Metals LON:EEE, off some 17%. The stock found meaningful support at the end of last week but there was no official statement to back this up, resulting on the gains being unsustainable. However to give some context to today’s selling, upside last week was in the region of 60%.
