The junior market experienced some fluctuations this week. Stocks remained relatively flat until a significant 50-point interest rate cut from the US Federal Reserve, alongside the Bank of England’s decision to hold rates steady, sparked a wave of bullish sentiment in the market.
The FTSE 100 dropped over 1% on Friday. The UK’s benchmark FTSE 100 stock index declined, marking a weekly drop following unexpectedly strong retail sales data. The FTSE 100 decreased by 1.2%, and the midcap index, more focused on domestic companies, fell by 1.6%. Both indexes experienced their largest single-day drop in nearly seven weeks and recorded losses for the week.
Friday saw widespread declines across all major sector indexes, all finishing in the red. The “personal goods” index, which includes companies like Watches of Switzerland, Dr Martens, and Burberry, led the downturn with a 5% drop.
The only exception was the precious metal miners, which gained 0.2% as gold prices surged past the $2,600 mark for the first time. This increase was fueled by expectations of further US interest rate cuts and escalating tensions in the Middle East.
Global Petroleum (LON: GBP) saw a rise following its recent application for two additional licences adjacent to its existing one in Western Australia. These new licences have identified precious and base metals targets with similar characteristics to the current licence. The company’s recent board appointments bring expertise in this field. The share price surged by 37.8%, reaching 0.1275p.
In addition, Global Petroleum exercised its option to acquire an extra 10% stake in one of its existing Western Australian licences.
Independent games developer Team17 Group PLC (LON: TM17) saw a 23% boost after announcing an 11% year-on-year revenue increase for the first half. Team17 is known for its simulation games, including Construction Simulator, Police Simulator, and the darkly titled Autopsy Simulator.
Nostra Terra Oil and Gas (LON: NTOG) had an impressive week, with its share price climbing by 20%. The boost came after the appointment of Paul Welch as the new chief executive, succeeding founder Matt Lofgran. Nostra Terra highlighted Welch’s relevant expertise, experience, and a clear strategy for driving organic growth within the company.
Cloud-based digital editing platform provider Blackbird PLC (LON: BIRD) surged another 16% following its interim report last week, which revealed a rise in users and a reduction in pre-tax losses.
Meanwhile, Paul Scott has acquired a 3.18% stake in wellhead safety equipment developer Plexus Holdings (LON: POS), driving the share price up by 13.3% to 11.5p.
Synectics PLC (LON: SNX) climbed 14% after reporting continued positive trading momentum in the third quarter. The company, which specializes in advanced security and surveillance systems, informed investors that its full-year financial results for 2024 are expected to surpass previous market forecasts.
FALLERS
Jade Road Investments (LON: JADE) shares continue to decline after announcing the issuance of up to £1 million in principal value convertible loan notes with a 10-month term. These notes carry no interest, and the conversion price is set at a 30% discount to the lowest closing bid price within the 30 days before conversion. The company has already issued £80,000 of convertibles to strategic partner MBM. With the share price falling by 40% to 0.3p, the market capitalisation is now only slightly higher than the maximum amount of convertibles that can be issued, raising concerns about significant potential dilution.
Wishbone Gold (LON: WSBN) has raised £360,000 at 0.375p to provide working capital, causing the share price to drop 28.91% to 0.390p.
Meanwhile, digital media company Catenai (LON: CTAI) narrowed its loss from £196,000 to £13,000 in the six months ending June 2024, largely due to fees earned from a £450,000 convertible loan note investment in oil and gas data analytics company Klarian, along with reduced costs. Catenai has moved from net liabilities to net assets, with an improved cash position of £31,500. Despite these improvements, the share price fell 30.2% to 0.15p.
Proton Motor Power Systems PLC (LON: PPS) also saw a significant decline after its interim trading update. Chairman Antonio Bossi admitted that trading conditions were “extremely challenging,” with potential customers hesitant to commit to substantial investments in hydrogen fuel cells. Order intake plummeted to £500,000, down from £1.4 million in the first half of 2023, causing a 39% drop in the share price.
TT Electronics PLC (LON: TTG) shares dropped 10% this week following a trading update from the engineering and manufacturing firm. The company revealed that lower order intake from its North American customers is expected to reduce second-half revenue by £15-20 million compared to prior forecasts. TT Electronics also cited “operational efficiency issues” at two of its sites, negatively impacting both revenue and profitability.
In the natural resources sector, major fallers included gold miner Wishbone, down 28.91%, oil and gas group Mosman, which fell 20%, and Chariot, another oil and gas company, which saw its shares plunge nearly 50%.
