Over the past week, the junior market experienced minimal movement. The week began on a high note on Monday but slowed down for the remainder, with the AIM All-Share Index ending about 0.4% lower.
The trading in major stocks was more erratic, with the FTSE 100 also ending the week on a decline, dropping approximately 0.5% by Friday.
In the US, with many engaged in Thanksgiving celebrations and enjoying leisure time, trading volumes were notably low across major New York indices, resulting in limited influence on the London Stock Exchange from across the Atlantic.
In the UK, business confidence received a moderate lift from positive private sector growth, as evidenced by encouraging PMI data released on Wednesday.
Chancellor Hunt’s Autumn Statement had a more significant impact on the British pound than on the stock market. However, the unexpected 2% cut in employee national insurance contributions raises the question of whether this will spark increased interest among retail investors.
Market Summary > @bidstack
LON #BIDS
0.54 GBX+0.22 (67.97%)⤴️today
24 Nov, 13:55 GMT • Disclaimer@ZaksTradersCafe The focus is on an end-of-week close above the 50-day moving average around 0.35p. https://t.co/PDJq3iPliV pic.twitter.com/4UPxGVG0TR— Share_Talk ™ (@Share_Talk) November 24, 2023
Ilika PLC (AIM: IKA, OTCQX: ILIKF), a specialist in solid-state batteries reported exiting the first half of its fiscal year with a robust balance sheet, highlighting significant operational advancements during the period. The company’s shares reflected this positive news, ending the week over 40% higher.
RUA Life Science plc (AIM: RUA) experienced a rollercoaster week. Its shares almost tripled on Tuesday following an optimistic update on its business operations and the announcement of seeking non-dilutive funding sources.
However, by Friday, RUA reported a 28% decline in half-year revenues up to September 30. Despite this setback, the medical devices company’s stock still managed to secure a 60% increase in weekly gains.
Mercia Asset Management PLC (AIM: MERC) had a successful week, with its shares increasing by 20% after the profitable sale of its largest direct investment, nDreams, a leading virtual reality studio, to the Aonic gaming investment group.
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF) saw its shares rise by 35% following the extension of a $2 million (£1.6 million) short-term loan facility.
@BaronOilplc is the next catalyst coming? #BOIL broke the 200-day moving average at 0.11p, with a target of up to 0.14p by the end of the next month. Rising 50-day line-side way shuffle – V-shaped bull flag breakout @ZaksTradersCafe Has the rally started?https://t.co/FqOubA0tmY
— Share_Talk ™ (@Share_Talk) November 24, 2023
Team17 Group PLC (AIM: TM17) saw its shares fall by 46%. The game’s developer and publisher anticipated revenues slightly above expectations, but cost overruns and several accounting impairments are expected to impact earnings.
Victoria plc’s shares declined nearly 20% following a report of reduced underlying revenue and operating profit, leading to a pre-tax loss in the first half.
Motorpoint Group PLC (LSE: MOTR, OTC: MTPTF) shares dropped 6% to a record low after the company reported a first-half loss and a sharp decrease in used car values in the early part of the second half.
Velocys PLC (AIM: VLS) shares initially surged by 60% at the week’s start after announcing funding negotiations. This included a purchase offer for the entire company from a consortium led by Lightrock and Carbon Direct Capital, albeit at a significant discount to its current market value.
#JOG is responding well to recent news and high-profile buyers. Above the initial target of around 240p, the next target is 280p by the end of the next month, supported by a golden cross between the 50 and 200-day moving averages @ZaksTradersCafe https://t.co/OANimff3XO pic.twitter.com/P3eYhNHXh9
— Share_Talk ™ (@Share_Talk) November 25, 2023
Jersey Oil and Gas PLC (AIM: JOG, OTC: JYOGF) stood out in the energy sector, with its shares increasing nearly 20% in the second half of the week.
JOG has secured agreements that provide it with a 20% free carry in a North Sea project, which is expected to reach a peak production of 35,000 barrels of oil per day and is set to commence in late 2026.
The key detail? In exchange for relinquishing an 80% interest in the Greater Buchan Area (GBA), JOG is exempt from contributing to the £850 million to £900 million capital investment needed to start the project.
Additionally, JOG will receive approximately £30 million in phased payments from its partners, NEO Energy, the field operator, and Serica, a North Sea oil and gas expert. JOG also benefits from partial subsidies for preliminary work conducted prior to the field’s development approval.
With its shares priced at 257p, the company’s current valuation stands at about £84 million. However, Cavendish, a research firm, estimates its value should be nearer to £245 million.
Great Southern Copper PLC (LSE: GSCU) secured £905,000 to support its operations in Chile, including the exploration of promising copper and gold sites.
The company’s shares, priced at 2.25p, were offered at roughly a 10% discount, a strategic move that resulted in the shares ending the week about 7% lower.
Similarly, CleanTech Lithium PLC (AIM: CTL, OTCQX: CTLHF) tapped into the secondary market, raising £8 million through a share placement, surpassing their initial goal by £2 million. This Chile-focused mining company offered its shares at about a 15% discount, leading to a more than 20% decline in share value following this calculated markdown.
A ray of hope for a revival in the small to mid-cap secondary market appeared this week with the successful fundraising by Videndum PLC (LSE: VID). Amidst the broader challenges faced by small-cap companies in securing funds over the last two years, Videndum, a provider of hardware and software for content creation, successfully raised £125 million through a placement on Tuesday.
This achievement positively impacted the company’s stock, which saw a significant increase of 22.5%, reaching 336p by Friday morning.
