Cambridge Index

Cambridge Index gains 0.1%

The Cambridge index added 0.1% or 36.8 points to settle at 27,944.8, as index heavyweights such as Johnson Matthey and DS Smith posted weekly gains to their share prices. Jefferies reissued its “Hold” rating on DS Smith, up 2%. Peel Hunt maintained its “Add” rating on Greene King, down 0.3%.

Elektron Technology, up 12.7%, announced in its trading update that its first half trading performance recorded a growth beyond market forecast, with the total sales expected to surge 16.9% to £15.9m. Revenues from Bulgin climbed 14.4% during the period, backed by strong order intake, while revenue growth in Elektron Eye Technology was supported by improvement in its distribution channel. The Group expects to publish its interim results on 19 September 2018. Vernalis, up 10.4%, announced that it has accepted the terms of a recommended cash offer made by Ligand Holdings UK Limited to acquire the entire issued and to be issued capital of Vernalis. Under the terms of the acquisition, Vernalis’ shareholders will receive 6.2p in cash for each Vernalis share, summing up the issued share capital of Vernalis at approximately £32.7m. The acquisition is subject to approval by Vernalis’ shareholders and sanctioning of the Scheme by the Court. Netcall, up 5.6%, announced that it has successfully signed a four-year contract with New York Stock Exchange listed group for a combined cloud platform of MatsSoft Low-code platform and Netcall's Liberty omnichannel Contact Centre solution. The contract is valued at £1.4m, with an option to continue for further two years.

Ubisense Group, down 3.3%, announced in its trading update that it expects the total revenue to fall nearly 20% to £10m, led by disposal of its Japanese geospatial unit. Meanwhile, it anticipates ‘own product’ revenue to grow nearly 4.5% to £7m, with an order backlog of more than £5m. The company also stated that it continues to trade in line with Board expectations.

Sareum Holdings, down 5.7%, announced an update on Sierra Oncology’s second-quarter results that the ongoing development of SRA737 drug candidate has progressed well, while its monotherapy study was refined to focus mainly on high grade serous ovarian cancer with the help of emerging filed data. Sierra expects preliminary data from the monotherapy trial to be reported in the first half of 2019.

UK markets closed mostly lower last week, led by losses in mining sector stocks. British GDP rose as expected on a quarterly basis in Q2 2018, while the nation’s manufacturing production advanced higher than expected in June. UK’s Halifax house price index advanced to a nine-month high level in the May-July period, while the nation’s total trade deficit narrowed in June. The FTSE techMARK 100 index fell 0.8% to end at 4772.3, while the FTSE AIM 100 index eased 0.1% to close at 5773.75. However, the FTSE 100 index added 0.1% to settle at 7667.01.

US markets ended mixed in the previous week. The US President Donald Trump imposed double tariffs on Turkey’s steel and aluminium imports. US consumer credit advanced less than expected in June and the nation’s producer prices climbed less than anticipated in July. US initial jobless claims unexpectedly dropped in the last week, whereas the consumer prices rose as expected in July. The DJIA index fell 0.6% to end at 25313.1, while the NASDAQ index gained 0.3% to close at 7839.1.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap

Sector Break-up - No. of Comps.

Index movers

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, declined 5% to 162p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, rose 2% to 511.8p. Jefferies reissued its “Hold” rating on the stock.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, surged 12.7% to 44.4p and emerged as the top gainer in the Cambridge index. The company, in its trading update for the six months ended 31 July 2018, announced that its first half trading performance recorded a growth beyond market forecast, with the total sales expected to surge 16.9% to £15.9 million. Revenues from Bulgin climbed 14.4% during the period, backed by strong order intake, while revenue growth in Elektron Eye Technology was supported by improvement in distribution channel. The Group expects to publish its interim results on 19 September 2018.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, eased 3.5% to 1095p. Finncap reaffirmed its “Corporate” rating on the stock.

Horizon Discovery Group PLC

Horizon Discovery Group PLC, the life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines, advanced 5.6 % to 190p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, climbed 5.6% to 70.3p. The company announced that it has successfully signed a four-year contract with New York Stock Exchange listed group for a combined cloud platform of MatsSoft Low-code platform and Netcall's Liberty omnichannel Contact Centre solution. The contract is valued at £1.4 million, with an option to continue for further two years. FinnCap reconfirmed its “Corporate” rating on the stock.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, dropped 5.7% to 0.8p and emerged as the top loser in the Cambridge index. The company announced an update on Sierra Oncology’s second-quarter results that the ongoing development of SRA737 drug candidate has progressed well, while its monotherapy study was refined to focus mainly on high grade serous ovarian cancer with the help of emerging filed data. Sierra expects preliminary data from the monotherapy trial to be reported in the first half of 2019.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, fell 5% to 268.5p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, jumped 10.4% to 6p. The company announced that it has accepted the terms of a recommended cash offer made by Ligand Holdings UK Limited to acquire the entire issued and to be issued shares of Vernalis. Under the terms of the acquisition, Vernalis’ shareholders will receive 6.2p in cash for each Vernalis share, summing up the issued share capital of Vernalis at approximately £32.7 million. The acquisition is subject to approval by Vernalis’ shareholders and sanctioning of the Scheme by the Court.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, slid 4.4% to 239p.

Other movers

Greene King PLC

Shares of pub operator, Greene King PLC, edged 0.3% lower to 487p. Peel Hunt maintained its “Add” rating on the stock.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, slipped 3.3% to 73p. The company, in its trading update for the six months ended 30 June 2018, announced that it expects the total revenue to fall nearly 20% to £10 million, led by disposal of its Japanese geospatial unit. Meanwhile, it anticipates ‘own product’ revenue to grow nearly 4.5% to £7 million, with order backlog of more than £5 million. The company also stated that it continues to trade in line with Board expectations.
Table 1: Cambridge Index - Weekly Top 5 Gainers

The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap

Sector Break-up - No. of Comps.

Table 1 Cambridge Index  Weekly Top 5 Gainers

Table 2 Cambridge Index  Weekly Top 5 Losers

Table 3 Cambridge Index  Top 5 Weights

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