The market ends the week on a high note, it’s your turn now, England!
The FTSE 100 closed up 0.4% today. The biggest gainer was Rightmove, which rose by 4%, followed by industrial group Spirax, up 2.8%. United Utilities was the largest decliner, falling 3.4%, followed by Endeavour Mining, down 2.3%.
Meanwhile, the mid-cap FTSE 250 increased by 0.1%. The top performer was the agricultural science business Genus, up 4.5%, closely followed by Trustpilot with a similar gain. The biggest loser was industrial company Dowlais, down 3.5%, followed by office landlord Workspace, which fell 3.1%.
Rosebank Industries (LON: ROSE), established by the founders and management of FTSE 100 constituent Melrose Industries, joined AIM on Thursday, 11 July. Like Melrose Industries, Rosebank Industries began as an investment company focused on seeking a significant initial acquisition. Their strategy involves identifying underperforming industrial and manufacturing companies, acquiring them, and enhancing their performance. The company raised £50 million at 250p per share, and the share price surged on the first day, continuing its momentum into Friday. The share price jumped 170% to 675p.
Faron Pharmaceuticals (LON: FARN) has met with the FDA in the US to discuss the registration plan for bexmarilimab, intended for treating myelodysplastic syndrome (MDS). The FDA recognized the challenges of conducting a randomized study in the relapsed/refractory setting and suggested a phase III study in frontline high-risk MDS. This approach targets a larger patient population and could expedite approval for the cancer treatment. Consequently, the share price increased by 67.6% to 157.5p.
Goldstone Resources (LON: GRL) announced that gold production at the Homase project in Ghana reached 1,400 ounces by mid-June, with gold recoveries doubling to 68%. Production is expected to increase to 1,000 ounces per month. Consequently, the share price soared by 126% to 1.525p.
Among the top gainers, Mosman Oil and Gas Ltd (LON: MSMN) saw its share price surge by 53% after announcing a pivot into helium.
Similarly, Union Jack Oil PLC (LON: UJO, OTCQB: UJOGF) experienced a 19% increase in its stock price following the announcement of drilling its second well in its American venture.
Broker Shore Capital suggested that Union Jack could see results from the initial well within a week, potentially leading to production within weeks and recouping drilling costs within months.
This project is considered low-risk and low-cost compared to UK-based projects.
Deltic Energy PLC (LON: DELT) defied the trend with its shares rising 30% after securing a license in the latest round under the Tory government, confirmed earlier this week.
The license includes the Pharos and Teviot discoveries, with the newly added area considered an extension of an existing Deltic exploration project.
FALLERS
On the downside, Biome Technologies PLC (LON: BIOM) saw its value plummet by 48% following a warning about order delays in its bioplastics business.
UK Oil & Gas PLC (LON: UKOG) saw its share price drop by 35%, erasing the previous week’s gains sparked by interest in hydrogen storage.
The broader junior oil and gas sector also faced difficulties, mainly due to the new Labour administration’s unfavorable stance on new UK oil and gas exploration.
Biome Technologies (LON: BIOM) continues to struggle with order delays in its bioplastics division, with technical validations likely not finalized until later in 2024. Additionally, the coffee packaging market has weakened. However, significant revenues are anticipated from the RF Technologies division. Despite this, overall revenues will fall well below expectations, and a small loss is projected for 2024. Additional working capital may be needed. Consequently, the share price slumped 53.6% to an all-time low of 32.5p.
Recruiter Norman Broadbent PLC (LON: NBB) announced plans to capitalize on challenging sector conditions through acquisitions. However, the market responded to this announcement, and a sharp drop in fee income last year, by marking down the shares by 21%.
Crimson Tide (LON: TIDE) shares fell by 35.2% to 175p after Ideagen decided not to proceed with a bid, returning to levels seen before bid approaches were announced.
Clontarf Energy (LON: CLON) reported that its Bolivian joint venture partner, NEXT-ChemX, is commissioning a direct lithium extraction plant, which is now preparing for preliminary testing. Bulk samples will be collected and tested, potentially advancing the Bolivian lithium assets to the second phase of the approval process for development. An update to the Bolivian lithium law is also anticipated. The share price dipped by 21.7% to 0.09p.
