Cambridge Index

Cambridge Index falls 0.3%

The Cambridge index dropped 70.96 points or 0.3% to close at 27,908.0, as seven out of the top ten index heavyweights posted weekly losses to their share prices. Peel Hunt restated its “Buy” rating on DS Smith, down 0.2%. Berenberg Bank raised its target price on Abcam, up 5.1%, to 1640p from 1230p and lifted its rating to “Buy” from “Hold”. Peel Hunt reiterated its “Hold” rating on the stock. Citigroup reconfirmed its “Buy” rating on Greene King, down 5.7%.

Peel Hunt reissued its “Hold” rating on Dialight, up 18%, with a target price of 550p. Horizon Discovery Group, up 4%, in its trading update for the six months ended 30 June 2018, announced that it expects a revenue growth of 107% to around £25.1m and 126% on a constant currency basis to £27.3m. Meanwhile, it anticipates gross margins for the period to surpass 60%. Moreover, the company announced that Dr Ian Gilham will resume his role as Non-Executive Chairman with immediate effect. Peel Hunt maintained its “Hold” rating on the stock. Numis securities reissued its “Buy” rating on the stock.

Cambridge Cognition Holdings, down 1.7%, announced that it has signed a commercial deal with digital health provider, Healthy Amplified, in which the latter would resell Cambridge Cognition’s CANTAB technology in 35 US Metropolitan Markets by December 2018. FinnCap reaffirmed its “Corporate” rating on the stock. Kier Group, down 2.9%, announced the successful achievement of potential cost savings after the recent commencement of "Future Proofing Kier", an efficiency and streamlining programme. Further, Kier announced that it has appointed Claudio Veritiero, current Strategy and Corporate Development Director, as its Chief Operating Officer with immediate effect. Also, the company disclosed that its Executive Directors, Nigel Brook and Nigel Turner have decided to step down from their roles with immediate effect. Netcall, down 7%, announced a four-year contract with an US-listed company for its Liberty omnichannel Contact Centre software.

UK markets ended in the red last week, weighed down by losses in mining sector stocks and dovish comments from the Bank of England Governor Mark Carney on uncertainties surrounding Brexit.  On the data front, the UK manufacturing sector activity eased to a three-month low in July, while its consumer confidence index unexpectedly dropped in the same month. Also, the UK services PMI declined to a three-month low level in July. Meanwhile, the British net consumer credit climbed more-than-expected in June. The FTSE 100 index declined 0.5% to settle at 7659.1, while the FTSE AIM 100 index fell 1.2% to close at 5780.8. Meanwhile, the FTSE techMARK 100 index lost 0.6% to end at 4808.6.

US markets closed higher in the previous week, after the US Federal Reserve acknowledged the US economy as strong and hinted at possible interest rate hike in September. In economic news, the US unemployment rate declined to an eighteen-year low in July, while the pending home sales rebounded in June. Furthermore, the US consumer confidence index unexpectedly climbed in July. On the contrary, the nation’s non-farm payrolls advanced less than expected in July, whereas the ISM manufacturing PMI fell to a three-month low in July. The DJIA index marginally rose to end at 25451.1, while the NASDAQ index gained 1% to close at 7737.4.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, climbed 5.1% to 1437p. Berenberg Bank raised its target price on to stock to 1640p from 1230p and lifted its rating to “Buy” from “Hold”. Peel Hunt reiterated its “Hold” rating on the stock.

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, slid 2.9% to 186p.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, surged 18% to 550p and emerged as the top gainer in the Cambridge Index. Peel Hunt reissued its “Hold” rating on the stock with a target price of 550p.

Greene King PLC

Shares of pub operator, Greene King PLC, slumped 5.7% to 488.7p. Citigroup reconfirmed its “Buy” 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, added 4% to 180p. The company, in its trading update for the six months ended 30 June 2018, announced that it expects a revenue growth of 107% to around £25.1 million and 126% on a constant currency basis to £27.3 million. Meanwhile, it anticipates gross margins for the period to surpass 60%. Moreover, the company announced that Dr Ian Gilham will resume his role as Non-Executive Chairman with immediate effect. Peel Hunt maintained its “Hold” rating on the stock. Numis securities reissued its “Buy” rating on the stock.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, dropped 2.9% to 922.5p. The company announced the successful achievement of potential cost savings after the recent commencement of "Future Proofing Kier", an efficiency and streamlining programme. Further, Kier announced that it has appointed Claudio Veritiero, current Strategy and Corporate Development Director, as its Chief Operating Officer with immediate effect. Also, the company disclosed that its Executive Directors, Nigel Brook and Nigel Turner have decided to step down from their roles with immediate effect.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, advanced 4.4% to 107.5p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, tumbled 7% to 66.5p and emerged as the top loser in the Cambridge Index. Today, the company announced a four-year contract with an US-listed company for its Liberty omnichannel Contact Centre software.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, jumped 7.4% to 0.9p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, declined 4.7% to 282.5p.

Other movers

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, slipped 1.7% to 148.5p. The company announced that it has signed a commercial deal with digital health provider, Healthy Amplified, in which the latter would resell Cambridge Cognition’s CANTAB technology in 35 US Metropolitan Markets by December 2018. FinnCap reaffirmed its “Corporate” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, edged 0.2% lower to 502p. Peel Hunt restated its “Buy” rating on the stock.

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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