The junior market experienced a rough week, as the AIM All-Share Index fell by 4%, surpassing the 1.8% decline of the FTSE 100 blue-chip index.
In addition to significant losses for Big Tobacco, attributed to Sunak’s policies, the market also grappled with the negative influence of declining oil stocks due to weak crude prices. Lacklustre metal prices further compounded the challenges.
Moreover, the revelation of unexpected US job openings bolstered the narrative of prolonged high-interest rates, intensifying the cautious stance in the global stock markets.
Highlights from the Stock Market
In the small-cap energy and natural resources segment, several stocks faced setbacks this week:
- Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) plummeted by 80% due to challenges with its Brazilian nickel operations.
- Oracle Power PLC (AIM:ORCP) saw a staggering drop of nearly 60% after launching a significantly discounted £350,000 fundraising initiative.
- Amte Power (AIM:AMTE) suffered a 25% decrease following its own discounted fundraiser.
In contrast, there were also notable gainers:
- Zanaga Iron Ore Co Ltd (AIM:ZIOC) surged over 50%, continuing its positive momentum from last week’s interim trading announcement.
- Orcadian Energy PLC (AIM:ORCA) saw a remarkable increase, almost doubling its value after confirming a £350,000 equity funding round. Despite the funding coming at a 14% discount, news regarding its efforts to obtain three North Sea permits positively impacted investor sentiment.
Moving away from heavy industries, in the life sciences sector:
- ValiRx PLC (AIM:VAL) skyrocketed by over 130% during the week. A significant portion of this growth was seen on Friday, prompting the company to clarify that they weren’t withholding any unpublished price-sensitive data. Notably, ValiRx has been on an upward trend since presenting a hopeful operational review at September’s end.
- Renalytix PLC (AIM:RENX) saw an initial spike of 28% on Tuesday after CMS set a price of $950 for its FDA-approved kidneyintelX.dkd test. However, by mid-week, the stock value adjusted from a high of nearly 80p to 48p, even with advancements in its US patent claims.
In the communications sector:
- Spirent Communications (LSE:SPT) witnessed a significant decline of over 30% after announcing a profit warning for Q3. The company, specializing in automated testing for new-gen devices and networks, anticipates revenue to decrease by roughly 20% for the first nine months of 2023, consistent with earlier predictions from the first half.
Potential reductions in single-use vapes may soon be seen on our streets and retail shelves if Rishi Sunak has his say.
Addressing the Conservative Party supporters in Manchester this Wednesday, he proposed a review and possible restriction on disposable vapes.
While no decisions were finalized, it seemed less like mere rhetoric and more of a tangible intention, especially with his straightforward approach to phasing out traditional cigarettes in the UK. His strategy involves raising the legal smoking age annually until eventually only those in their eighties can legally smoke a cigarette.
What does this mean for major disposable vape distributor, Supreme plc (LSE: SUP) known for its prominent brand, ElfBar?
Supreme expressed their willingness to work with the government on the matter. However, jittery shareholders responded negatively, causing the shares to drop.
Supreme experienced a 14% decline in the junior market this week, reflecting a similar dip when Sunak previously voiced concerns about the single-use vape market in September.
At first glance, the performance of listed esports stocks might imply a trend that’s fading.
Yet, recent figures indicate that the UK’s esports sector is not only active but also expanding at a significant rate. Revenues are projected to reach $202 million this year, marking an increase of over 30% since 2020.
Considering this, are esports ventures like David Beckham-supported Guild Esports and Gfinity considered undervalued? It’s a possibility.
Indeed, the current market valuations might not truly capture the anticipated growth of the industry. By 2025, the sector is predicted to be valued at $250 million within the UK and approximately $1.9 billion on a global scale, based on data from Statista.
