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After a rare day of losses ahead of the weekend break, the junior market returned to its winning way on Monday, although gains were somewhat diminished from the morning highs. The AIM Index closed up three points at 1198.56.

  • Zephyr Energy up 60%
  • Nightcap up 26%
  • Borders and Southern Petroleum down 40%
  • Asiamet Resources down 29%
  • Jet2 down 11%

Zephyr Energy [LON:ZPHR] was the day’s best performer, adding almost 60% by the close. The Rocky Mountain oil and gas company published an update on drilling performance and what has been released so far was encouraging. There’s more data expected at the end of the week and Zephyr was also positive over the new Presidential administration, with the company stating that its own environmental goals align well with the aims of the new government. The share price has however trebled over the last 10 days, so holding onto gains in the short term may prove challenging.

Newly IPO’d bar operator Nightcap [LON:NGHT] has surged higher today, adding 26%. An upbeat piece in yesterday’s Mail on Sunday could well be behind the jump and traded volumes were incredibly high – almost as many shares changed hands today as have done since the IPO almost 2 weeks back. A 6% spread also needs to be taken into account.

Borders and Southern Petroleum [LON:BOR] was the biggest faller, slipping 40% as the stock continued to unwind last week’s gains. Shares remain elevated from levels seen before Christmas but there’s nothing behind the move, although worth noting that a nominee did dispose of around 2% of the company at the market top on Thursday.

Miner Asiamet Resources [LON:ARS] also struggled today, in the wake of news that it had terminated the Sale and Purchase Agreement for Indokal which we have referenced before. The slide of 29% now leaves the stock back at levels seen before this process was kicked off back in October. Those who got out before the situation started to wobble in December would have been sitting on a 150% profit. There’s a 30 minute video interview with the Chief Exec now on the Asiamet website which gives a lot more detail as to what’s happened.

A notable mention for Jet2 [LON:JET2], which in line with the wider travel sector has had a torrid day. Shares fell 11% as speculation builds that we’ll see an announcement tomorrow over the government taking an even more aggressive stance when it comes to quarantine measures for travellers arriving in the UK. With Jet2 not having the diversification into mainland Europe which is enjoyed by some of its peers – and with the share price having been supported by a belief that the traditional package holiday would be in for a renaissance – the unfolding news is leaving the company exposed.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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