Cambridge Index

Cambridge Index falls 1.9%

The Cambridge index declined 524.7 points or 1.9% to close at 27,680.1, as the top three index heavyweights posted weekly losses to their share prices. Johnson Matthey, down 1.4%, announced that it will build a new demonstration plant in the UK to produce cobalt battery material used in electric vehicles, as the company looks forward to market its battery material. Berenberg Bank reissued its “Buy” rating on the stock with a target price of 4300p. DS Smith, down 1.6%, announced that is Annual General Meeting (AGM) is scheduled on 04 September 2018. Peel Hunt reissued its “Hold” rating on Abcam, up 5.2%. Peel Hunt restated its “Add” rating on Greene King, down 3.8%. Numis Securities reissued its “Reduce” rating on the stock.

Frontier Developments, up 3.0%, in its trading update, announced that its Jurassic World Evolution game franchise witnessed robust digital sales across all the platforms – PC, PlayStation and Xbox One - after its digital launch on 12 June 2018. As a result of the strong initial sales performance of Jurassic World Evolution, the Board expects the total revenue for the year ending 31 May 2019 to be near the top end of the current market forecasts of £58m to £88m range. Peel Hunt restated its “Buy” rating on the stock. Liberum Capital reaffirmed its “Hold” rating on the stock. Peel Hunt lowered its target price on Xaar, up 2.3%, to 230p from 300p and maintained a “Hold” rating. Peel Hunt reconfirmed its “Hold” rating on Horizon Discovery Group, unchanged at 165p.

JPMorgan Chase lifted its target price on Kier Group, down 2.5%, to 1550p from 1178p and maintained an “Overweight” rating. Marshall Motor Holdings, down 3.3%, in its trading statement for the six months ended 30 June 2018, announced that the Group’s trading performance was positive despite facing challenges in the UK new vehicle market. Hence, it expects the profit before tax from continuing operations for H1 2018 to be slightly higher than the previous comparable period. Moreover, the company’s full-year outlook is now anticipated to be at the upper end of the Board’s expectations. Separately, the company announced that Chief Financial Officer, Mark Raban, has decided to resign from his position. Bango, down 10.5%, announced that it has entered into a partnership agreement with Pandora, a US-based music streaming service provider, aimed at increasing subscriptions with the help of Bango’s technology platform. Initially, the service will be available on a wireless network provider based in the US, helping Pandora to expand its subscriber base through its reseller partners.

UK markets finished mostly lower in the prior week. In economic news, the British service sector activity jumped to an 8-month high in June, while the construction sector accelerated at its quickest pace in seven months in the same month. Also, the nation’s GDP growth was revised higher for the first quarter of 2018, while the manufacturing sector activity unexpectedly jumped in June. The FTSE 100 index dropped 0.3% to settle at 7,617.7, while the FTSE techMARK 100 index lost 0.8% to end at 4,742.1. However, the FTSE AIM 100 index gained 0.5% to close at 5,716.3.

US markets closed higher in the previous week, after the US manufacturing sector activity surprisingly rose in June, while the factory orders jumped in May. Furthermore, the US non-farm payrolls rose more than expected in June, while the nation’s trade deficit narrowed to a 19-month low in May. In major news, the US Fed’s June meeting minutes revealed that policymakers might soon announce current policy as neither constraining nor economic enhancing as the central bank's interest rate-hiking cycle has advanced enough. The DJIA index advanced 0.8% to end at 24,456.5, while the NASDAQ index jumped 2.4% to close at 7,688.4.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, climbed 3.8% to 4.2p.

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, advanced 5.2% to 1403p and emerged as the top gainer in the Cambridge Index. Peel Hunt reissued its “Hold” rating on the stock.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, eased 7.4% to 2486p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, declined 10.5% to 174.5p and emerged as the top loser in the Cambridge Index. The company announced that it has entered into a partnership agreement with Pandora, a US-based music streaming service provider, aimed at increasing subscriptions with the help of Bango’s technology platform. Initially, the service will be available on a wireless network provider based in the US, helping Pandora to expand its subscriber base through its reseller partners.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, edged 2.7% higher to 38p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, rose 3% to 1380p. The company, in its trading update, announced that its Jurassic World Evolution game franchise witnessed robust digital sales across all the platforms – PC, PlayStation and Xbox One - after its digital launch on 12 June 2018. As a result of the strong initial sales performance of Jurassic World Evolution, the Board expects the total revenue for the year ending 31 May 2019 to be near the top end of the current market forecasts of £58 million to £88 million range. Peel Hunt restated its “Buy” rating on the stock. Liberum Capital reaffirmed its “Hold” rating on the stock.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, shed 4.7% to 9.1p.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, gained 2.9% to 175p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, fell 7.2% to 38.5p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, dropped 9.8% to 6.5p.

Other movers

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, fell 1.6% to 512.8p. The company announced that is Annual General Meeting (AGM) is scheduled on 04 September 2018.

Greene King PLC

Shares of pub operator, Greene King PLC, shed 3.8% to 554p. Peel Hunt restated its “Add” rating on the stock. Numis Securities reissued its “Reduce” 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, remained unchanged at 165p. Peel Hunt reconfirmed its “Hold” rating on the stock.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, edged 1.4% lower to 3568p. The company announced that it will build a new demonstration plant in the UK to produce cobalt battery material used in electric vehicles, as the company looks forward to market its battery material. Berenberg Bank reissued its “Buy” rating on the stock with a target price of 4300p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, eased 2.5% to 936p. JPMorgan Chase lifted its target price on the stock to 1550p from 1178p and maintained a “Overweight” rating.

Marshall Motor Holdings PLC

Marshall Motor Holdings PLC, one of the UK's leading automotive retail and leasing groups representing a unique portfolio of prestige and volume brands and with the highest brand coverage of any dealer group in the UK, dropped 3.3% to 161p. The company, in its trading statement for the six months ended 30 June 2018, announced that the Group’s trading performance was positive despite facing challenges in the UK new vehicle market. Hence, it expects the profit before tax from continuing operations for H1 2018 to be slightly higher than the previous comparable period. Moreover, the company’s full-year outlook is now anticipated to be at the upper end of the Board’s expectations. Separately, the company announced that Chief Financial Officer Mark Raban has decided to resign from his position.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, rose 2.3% to 245p. Peel Hunt lowered its target price on the stock to 230p from 300p and maintained a “Hold” rating.

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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