Cambridge Index

Cambridge Index drops 1.9%

The Cambridge index declined 393.4 points or 1.9% to close at 20,781.7, as eight out of the top ten index heavyweights posted weekly losses to their share prices.

Peel Hunt trimmed its target price on Quixant, up 1.5%, to 500p from 600p and gave a “Buy” rating. Brady, unchanged at 64.3p, announced that it has appointed Carmen Carey as its new Chief Executive Officer with effect from 18 February 2019. Also, Ian Jenks has stepped down as its Executive Chairman to become a Non-Executive Chairman with effect from 01 April 2019.

Horizon Discovery Group, down 1.5%, announced that it has signed an exclusive target discovery partnership contract with C4X Discovery Holdings for validating targets and developing next-generation oncology drugs. Peel Hunt reconfirmed its “Hold” rating on the stock. Ubisense Group, down 2.2%, announced that it has received approval from the German Federal Cartel Office for the conditional sale of its RTLS SmartSpace business and renaming of the group to IQGeo Group. Scientific Digital Imaging, down 3.5%, in its interim results for the six months ended 31 October 2018, announced that revenues advanced by 23% to £8.1m from £6.6m, while profit before tax rose to £1.2m from £0.8m. FinnCap reiterated its “Corporate” rating on the stock. Kier Group, down 3.9%, announced that its proposed rights issue of 64.5m new shares received valid acceptances of only 24.3m shares from the shareholders. Hence, 28.1m new shares will be subscribed by its joint bookrunners, while sub-underwriters will be subscribing for the remaining 12.1m new shares. Separately, the company announced the successful disposal of its stake in KHSA Limited to Downer Group for A$43.7m. Peel Hunt slashed its target price on the stock to 900p from 1600p and gave a “Buy” rating. Elektron Technology, down 5.4%, announced the resignation of Peter Welch as the Non-Executive Director with effect from 31 January 2019. Further, it re-appointed Mr Richard John Piper as the Non-Executive Director as well as Senior Independent Director and a member of the Audit and Remuneration Committees with immediate effect. Cambridge Cognition Holdings, down 17.4%, in its trading update for the year ending 31 December 2018, announced that due to its adoption of new financial standard IFRS15 for FY2018, it expects revenue to fall to £6m from £6.7m in FY2017 and total sales order intake to rise to £7.6m from £5.1m. As a result of lower reported revenue, the company expects annual loss to widen to £1.5m from £0.3m in FY2017. FinnCap reissued its “Corporate” rating on the stock.

UK markets finished sharply lower last week, amid losses in commodity and financial sector stocks. In major news, the Bank of England, in its latest monetary policy meeting, kept its key interest rates unchanged at 0.75%. However, the central bank trimmed the country’s economic growth forecast to 0.2% from 0.3%, citing Brexit uncertainties. In economic news, the British annual house price growth dropped to a 5-year low in October, while the nation’s annual inflation rose at its slowest pace in 20 months in November. Also, the UK consumer confidence fell to a more than 5-year low in December. The FTSE 100 index declined 1.8% to settle at 6721.2, while the FTSE AIM 100 index fell 5.1% to close at 4368.3. Meanwhile, the FTSE techMARK 100 index lost 2% to end at 4298.7.

US markets ended significantly lower in the previous week, after the US Federal Reserve, at its December meeting, raised its benchmark interest rates by 0.25%. On the data front, the US manufacturing PMI slumped to a 19-month low in December, while the nation’s housing market index unexpectedly eased to a 3-year low in the same month. Additionally, the nation’s manufacturing index unexpectedly eased in December. On the contrary, the US existing home sales unexpectedly climbed in November, while the nation’s building permits surprisingly rose to a 7-month high in the same month. The DJIA index plunged 6.9% to end at 22445.4, while the NASDAQ index plummeted 8.4% to close at 6333.0.


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, slumped 7% to 86.5p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, sank 17.4% to 83p. The company, in its trading update for the year ending 31 December 2018, announced that due to its adoption of new financial standard IFRS15 for FY2018, it expects revenue to fall to £6 million from £6.7 million in FY2017 and total sales order intake to rise to £7.6 million from £5.1 million. As a result of lower reported revenue, the company expects annual loss to widen to £1.5 million from £0.3 million in FY2017. Meanwhile, the company’s preliminary results will be published on 21 March 2019. FinnCap reissued its “Corporate” rating on the stock.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, rallied 12.9% to 350p and emerged as the top gainer in the Cambridge index.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, plummeted 11.2% to 746p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, jumped 2.1% to 2775p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, climbed 1.5% to 340p. Peel Hunt trimmed its target price on the stock to 500p from 600p and gave a “Buy” rating.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, tumbled 7.6% to 171p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, tanked 26.9% to 0.5p and emerged as the top loser in the Cambridge index.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, advanced 3.5% to 209p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, surged 7.1% to 165p.

Other movers

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, remained unchanged at 64.3p. The company announced that it has appointed Carmen Carey as its new Chief Executive Officer with effect from 18 February 2019. Also, Brady announced the decision of Ian Jenks to step down as its Executive Chairman and continue further as a Non-Executive Chairman with effect from 01 April 2019.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, declined 5.4% to 43.5p. The company announced the resignation of Peter Welch as the Non-Executive Director with effect from 31 January 2019. Further, the company announced the decision of re-appointing Mr Richard John Piper as the Non-Executive Director as well as Senior Independent Director and a member of the Audit and Remuneration Committees with immediate effect.

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, dropped 1.5% to 166p. The company announced that it has signed an exclusive target discovery partnership contract with C4X Discovery Holdings for validating targets and developing next-generation oncology drugs. Furthermore, Horizon described that the collaboration would provide inherent new drugs with finite potent treatments for the patients suffering from colorectal and lung cancer. Peel Hunt reconfirmed its “Hold” rating on the stock.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, eased 3.9% to 395.8p. The company announced that its proposed rights issue to raise approximately £264 million via issue of 64.5 million new shares at 409p each, received valid acceptances of only 38% i.e. 24.3 million shares from the shareholders. Moreover, Kier detailed that 28.1 million new shares will be subscribed by its joint bookrunners, while sub-underwriters will be subscribing for the remaining 12.1 million new shares. Separately, the company announced that it has successfully completed the disposal of its stake in KHSA Limited to Downer Group for a total worth of A$43.7 million, including cash consideration of A$41.7 million. Peel Hunt slashed its target price on the stock to 900p from 1600p and gave a “Buy” rating.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, fell 3.5% to 34.5p. The company, in its interim results for the six months ended 31 October 2018, announced that revenues advanced by 23% to £8.1 million from £6.6 million reported in the same period last year. Moreover, its profit before tax rose to £1.2 million from £0.8 million, while basic earnings per share increased to 1.12p from 0.98p in the previous year. FinnCap reiterated its “Corporate” rating on the stock.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, slipped 2.2% to 66.5p. The company announced that it has received approval from the German Federal Cartel Office for the conditional sale of its RTLS SmartSpace business and renaming of the group to IQGeo Group PLC. Additionally, Ubisense mentioned that the company will trade with its new name IQGEO Group PLC and the ticker "IQG" with effect from 03 January 2019, following the completion of sale on 31 December 2018.

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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