Cambridge Index

Cambridge Index adds 0.8%

The Cambridge index rose 0.8% or 231.6 points to settle at 28,779.1, as heavyweights such as Johnson Matthey and AVEVA Group posted weekly gains to their share prices. Liberum Capital lifted its target price on Johnson Matthey, up 3.6%, to 4000p from 3300p and maintained a “Buy” rating. DS Smith, down 1.2%, announced that it has acquired Papeles y Cartones de Europa, known as Europac, for €1.67b. The acquisition will be financed through a rights issue raising nearly €1.15b and a new debt facility of €740.0m. Numis Securities restated its “Add” rating on AVEVA Group, up 2.4%, with a target price of 2050p. Numis Securities maintained its “Hold” rating on Greene King, up 6.2%, with a target price of 790p.

Gaming Realms, up 9.4%, announced that its annual revenues dropped to £30.3m, while reported a loss before tax of £6.6m. Separately, it announced a two-year licensing and revenue share agreement with GVC Holdings to introduce its "Slingo Originals" content globally. Meanwhile, the company’s Chairman, Michael Buckley, announced his intention to be the Non-Executive Chairman, while Board members, Atul Bali and Chris Bell, will not stand for re-election in the next AGM. Peel Hunt restated its “Buy” rating on the stock. Netcall PLC, up 5.6%, announced that MatsSoft Ltd, one of its fully-owned subsidiary has renewed a contract for four-year for a minimum value of £3.7m with UK's largest financial services institutions. FinnCap reconfirmed its “Corporate” rating on the stock. N+1 Singer reissued its “Buy” rating on Horizon Discovery Group, up 4.3%, with a target price of 194p.

Cambridge Cognition Holdings, down 1.2%, announced a partnership with the University of Bristol to work on the development of innovative brain health products, under the guidance of Professor Marcus Munafò. Amino Technologies, down 2.4%, in its half-yearly trading update, announced that it expects revenue for H1 2018 to decline to $41m from $49.8m in H1 2017, on the back of a major order being phased in H2 2018. Separately, it announced that Kabelnoord will be using Amino’s MOVE end-to-end multiscreen video platform, to provide next generation TV services as a part of its fibre-to-the-home network expansion plan. Meanwhile, the company has appointed Liberum Capital Limited as its Joint Broker. Dialight, down 3.9%, announced that it has appointed Steve Good as a Non-Executive Director, who will join the Nominations and Remuneration Committees. Further, Gaelle Hotellier will succeed Stephen Bird as a member and Chairman of the Remuneration Committee. Numis Securities reissued its “Buy” rating on RhythmOne, down 7.3%, with a target price of 52p. FinnCap reaffirmed its “Corporate” rating on Frontier Developments, down 8.6%. Kier Group, down 9.1%, announced a joint venture with Homes England and CKH Developments Ltd. for constructing around 5,400 homes across the country within ten years. Peel Hunt reissued its “Buy” rating on the stock. Beaufort Securities reaffirmed its “Speculative Buy” rating on CyanConnode Holdings, down 11.6%.

UK markets finished mostly higher in the last week, after the UK services sector activity jumped to 3-month high in May. Moreover, the UK BRC like-for-like sales sharply rebounded in May, while the UK construction PMI climbed more-than-expected in May. Also, the nation’s house prices rose more-than-estimated for May. The FTSE techMARK 100 index added 0.3% to end at 4,784.3, while the FTSE AIM 100 index jumped 1.2% to close at 5,734.4. However, the FTSE 100 index fell 0.3% to settle at 7,681.1.

US markets closed firmer in the previous week, led by gains in technology, retail and financial sector stocks. In economic news, the US ISM services PMI rose more-than-expected in May, whereas the nation’s trade deficit narrowed to a seven-month low in April. Moreover, the US factory orders dropped more-than-expected in April. The DJIA index advanced 2.8% to end at 25,316.5, while the NASDAQ index gained 1.2% to close at 7,645.5.


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, fell 7.1% to 158p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, plummeted 11.6% to 9.5p and emerged as the top loser in the Cambridge Index. Beaufort Securities reaffirmed its “Speculative Buy” rating on the stock.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, surged 7.2% to 37p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, dropped 8.6% to 1650p. FinnCap reaffirmed its “Corporate” 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, soared 9.4% to 8.5p and emerged as the top gainer in the Cambridge Index. The company, in its final results for the year ended 31 December 2017, announced that revenues dropped to £30.3 million from £32.2 million in the last year. However, its loss before tax narrowed to £6.6 million from £8.1 million in the previous year. Its basic and diluted loss per share rose to 2.95p from 2.56p in the prior year. Separately, the company announced a two-year licensing and revenue share agreement with GVC Holdings to introduce its "Slingo Originals" content globally and host the new casino game ‘BlackJack X-Change’ for a period of six weeks. Following the disposal of its few non-core assets, the company’s Chairman Michael Buckley announced his intention to be the Non-Executive Chairman with effect from 01 July 2018. Meanwhile, the company mentioned unwillingness of Board members, Atul Bali and Chris Bell, for re-election in the next Annual General Meeting. Peel Hunt restated its “Buy” rating on the stock.

Greene King PLC

Shares of pub operator, Greene King PLC, advanced 6.2% to 616p. Numis Securities maintained its “Hold” rating on the stock with a target price of 790p.

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, climbed 4.3% to 170.3p. N+1 Singer reissued its “Buy” rating on the stock with a target price of 194p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, declined 9.1% to 985p. The company announced a joint venture with Homes England and CKH Developments Ltd. for constructing around 5,400 homes across the country within ten years with a view to increase its annual mixed tenure house building activities by approximately 500 units till the end of 2020. Peel Hunt reissued its “Buy” rating on the stock.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, jumped 5.6% to 65.5p. The company announced that MatsSoft Ltd, one of its fully-owned subsidiary has renewed a contract for four-year for a minimum value of £3.7 million with UK's largest financial services institutions. FinnCap reconfirmed its “Corporate” rating on the stock.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, eased 7.3% to 202p. Numis Securities reissued its “Buy” rating on the stock with a target price of 52p. (former Blinkx PLC), the leading video search engine, eased 7.3% to 202p. Numis Securities reissued its “Buy” rating on the stock with a target price of 52p.

Other movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, fell 2.4% to 200.5p. The company, in its trading update for the six months ended 31 May 2018, announced that it expects revenue for H1 2018 to decline approximately at $41 million from $49.8 million in H1 2017, on the back of a major order being phased in H2 2018. Meanwhile, standalone revenues from software and services are expected to contribute 12% of the total revenues. Separately, it announced that Kabelnoord, a Netherlands-based cable operator, will be using Amino’s MOVE end-to-end multiscreen video platform, enabling Kabelnoord to provide next generation TV services as a part of its fibre-to-the-home (FTTH) network expansion plan. Meanwhile, the company has appointed Liberum Capital Limited as its Joint Broker, with immediate effect.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, rose 2.4% to 2496p. Numis Securities restated its “Add” rating on the stock with a target price of 2050p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, declined 1.2% to 165.5p. The company announced that it has partnered with the University of Bristol to work on the development of innovative brain health products, under the guidance of Professor Marcus Munafò. Through this collaboration, the company will be able to develop new software applications at a faster pace by conducting in-patient studies and assist clinicians to solve mental health problems across the globe.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, eased 3.9% to 496p. The company announced that it has appointed Steve Good as a Non-Executive Director, who will join the Nominations and Remuneration Committees from 1 June 2018. Further, Gaelle Hotellier will succeed Stephen Bird as a member and Chairman of the Remuneration Committee, following the latter’s resignation.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, dropped 1.2% to 555.8p. The company announced that it has acquired Spain-listed Papeles y Cartones de Europa, known as Europac, an integrated packaging business in the Western Europe for a consideration of €1.67 billion. It has received confirmation from the Board of Directors of Europac subject to fulfilment of legal procedure and approval by the CNMV. The acquisition will be financed through a rights issue raising nearly €1.15 billion and a new debt facility of €740 million. Peel Hunt reissued its “Buy” rating on the stock. Jefferies Group reissued its “Hold” rating on the stock with a target price of 460p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, advanced 3.6% to 3788p. Liberum Capital lifted its target price on the stock to 4000p from 3300p and maintained a “Buy” 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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