The FTSE 100 concluded the week on a positive note registering a 0.54% increase. Leading the gains was mining firm Antofagasta, which climbed 4.23%, and InterContinental Hotels Group, rising 3.64%. On the downside, Anglo American experienced the largest drop, falling 18.97% following its announcement to cut production.
Additionally, Berkeley Group saw a decline of 4.05%. In the mid-cap sector, the FTSE 250 index advanced by 0.45%. Cybersecurity firm Darktrace topped the gainers with a 4.31% increase, closely followed by Oxford Instruments, an industrial and research tools company, which went up by 4.05%. The most significant losses were recorded by gold mining company Centamin, down 3%, and life science investment trust Syncona, which decreased by 2.73%
The AIM All-Share Index concluded the week on a high note, gaining slightly more than one percentage point to close at 723, despite a downtrend in heavy industries involving companies such as Future Metals, Eurasia Mining, Hummingbird Resources, Kodal Minerals, and Greatland Gold, among others.
Market Risers
Recently, Cornerstone FS PLC (AIM: CSFS), a foreign exchange group, has been a standout performer on the AIM market, and this trend continued this week. The company’s shares soared by an impressive 45% following a highly positive update, as described by Shore Capital Markets, which led to a revision of its full-year earnings projections upwards for the second time in four months.
Quadrise PLC (AIM: QED) also experienced a significant share price increase of 43% after announcing favorable final results from its sustainable biofuel testing program completed last month. Sustainable fuel, still in its early stages, is anticipated to play a significant role in the global transition to net-zero emissions, with Quadrise’s bioMSAR Zero positioning itself as a competitive commercial product.
Polarean Imaging PLC (AIM: POLX, OTC: PLLWF) saw its shares jump over 50% following the announcement of its first de novo order for its XENOVIEW polariser from a leading academic medical center in the northeastern United States. The company, which expects its current cash reserves to last until the third quarter of 2024, also expressed optimism about ongoing positive discussions and negotiations with other top-tier academic medical centers.
Spectra Systems Corp, a banknote printing company, also performed well, gaining 22% in share value after acquiring Cartor Holdings. This strategic move is aimed at strengthening Spectra’s presence in the polymer banknote substrate market. The expanded company is anticipated to explore new sales opportunities across various product lines, including postage stamps, tax and revenue stamps, brand protection, security labelling, and other security documents.
Other notable movers this week included Genedrive plc, which saw a 65% increase, Sancus Lending Group Ltd with a 48% rise, Wentworth Resources Ltd up by 31%, and The Brighton Pier Group plc, which gained 26%.
Whisky is often associated with the festive season, yet not all related news is cheerful.
This week, The Artisanal Spirits Company (LON: ART), known for its Scotch malt whisky, experienced a nearly 30% drop in its stock value. The company issued a warning about slower sales in China and lower-than-expected revenue from a 50th-anniversary cask, leading to revenue projections falling short of targets.
Despite these setbacks, the AIM-listed company anticipates revenue growth in 2023 to be in the high single digits, around £23 million, though this is lower than the previously forecasted figure of over £25 million.
The company now expects to just break even for the year on an adjusted earnings basis.
Nevertheless, Andrew Dane, the chief executive, maintained a positive outlook. He acknowledged the disappointing sales in China and of the new cask but emphasized that the rest of the business has performed well and met growth expectations.
The AIM index received a significant boost from Smart Metering Systems PLC (AIM: SMS), one of its largest constituents, which saw its shares surge by 41% following news of a takeover proposal from the American private equity firm Kohlberg Kravis Roberts (KKR).
Shares of Quiz PLC (AIM: QUIZ) dropped by 20% this week following the release of the company’s interim results. The fashion brand reported a 14% decline in group revenues year-over-year, totalling £42.3 million. The company also experienced increased pre-tax losses and a substantial decrease in net cash.
Quiz cited the well-known challenges of rising living costs and inflation as key factors affecting consumer spending during the financial year. This has made the short-term forecast for many UK retailers, including Quiz, challenging to determine.
Alongside its interim results, Quiz announced plans for an extensive review of its strategic options to enhance shareholder value. This review will be led by Peter Cowgill, the independent chairman of the group.
Overall, stocks experienced an uplift on Friday, buoyed by several positive macroeconomic developments.
A Bank of England survey indicated that the public’s expectations for inflation over the next year have dropped to their lowest point in two years. This finding supports the belief that the Bank of England may not need to increase interest rates at its upcoming meeting on Thursday.
Further support for the disinflation narrative came from the latest ‘Report on Jobs’ survey conducted by KPMG and the Recruitment and Employment Confederation. The survey revealed a marked decrease in permanent staff placements and a continued drop in temporary billings, suggesting a widespread slowdown in hiring activities.
