It may be a new month, but the AIM Index march higher continues unabated. The junior market progressed well throughout Tuesday’s session before settling over 14 points higher at 1064.94.
- Tri-Star Resources up 45%
- Trufin Plc up 44%
- Caspian Sunrise down 29%
- Echo Energy down 16%
- Lansdown Oil & Gas down 7%
Tri-Star Resources [LON:TSTR] lurched higher on Tuesday, adding 45% in brisk trade. Less than a month ago the company expressed an intention to delist next week, with an AGM scheduled to vote on this tomorrow. With shareholders possibly being in line for a meaningful pay out, the rally could well be in support of this – or an indication that the delisting won’t pass.
Trufin Plc [LON:TRU] was another strong performer, adding 44%, although there’s nothing formal behind the move. Trading was materially above average and the shares did close on an 11% spread so a reversion may follow.
Caspian Sunrise [LON:CASP] was the day’s worst performer, off 29%, following an operational update this morning. Drilling progress has been slow and the company is stuck in export license negotiations. On top of this, Caspian is also appealing what it sees as a punitive cost assessment by the Kazakh authorities, one that it will struggle to meet given the current low cost of oil. There’s not much to cheer here.
Echo Energy [LON:ECHO] also slumped today by losing 16%, again off the back of an operational update and news of a fundraise. The dilution effect here will explain away much of the downside and there were no hidden surprises in the production news.
A notable mention for Lansdowne Oil & Gas [LON:LOGP], off a further 7% in Tuesday’s trade. The stock skidded yesterday off the back of that farm-out news and bargain hunters were in short supply. With oil prices slumping too amidst a potential stand off over production cuts, it’s perhaps little surprise that the sector is out of favour as the new month gets underway.