Cambridge Index

Cambridge Index falls 1.3%

The Cambridge index declined 1.3% or 377.1 points to settle at 29,054.4, as index heavyweights such as Johnson Matthey and DS Smith posted weekly losses to their share prices. Johnson Matthey, down 1.9%, announced that it will hold its Annual General Meeting on 26 July 2018. DS Smith, down 8.2%, announced that it is intending to raise approximately £1bn via rights issue for funding the recently announced acquisition of Europac. The company will issue approximately 293.1m new ordinary shares at 350p per share at a ratio of 3:11, representing nearly 27.3% of its current issued share capital. AVEVA Group, up 6.6%, announced that its Annual General Meeting will be held on 11 July 2018. Citigroup reissued its “Neutral” rating on the stock with a target price of 2800p. JP Morgan Cazenove reaffirmed its “Overweight” rating on the stock with a target price of 3000p. Abcam, up 4.1%, announced that Peter Allen has been appointed as its Non-Executive Chairman, with immediate effect. As a result, Louise Patten, interim Chairman of the company, will now resume her position as Senior Independent Director. Peel Hunt reissued its “Add” rating on Greene King, up 2.7%, with a target price of 700p.

Ubisense Group, up 25.6%, announced that its SmartSpace division has bagged a new contract from a North American military training solutions provider. It will offer real-time location services and 3D view of the entire environment, aimed at improving efficiency and effectiveness of military training. The company expects the initial revenues of nearly £4m to be recognized in 2018, along with an agreement for same sized orders in 2019. Peel Hunt reissued its “Buy” rating on Gaming Realms, up 8.2%. Cambridge Cognition Holdings, up 0.9%, announced that it is planning to launch a new software, CANTAB BrainHealth, which aims to assess and improve mental health and well-being at workplace. The company will launch CANTAB BrainHealth in the second half of 2018, which will accurately measure and monitor cognitive health and performance of an individual.

Elektron Technology, down 3.8%, announced that the order book of Bulgin is considerably stronger compared to the previous comparable period. It expects the half-yearly sales to be at least £13.5m, while expects full-year sales to be more than £27.3m, on the back of robust demand. RhythmOne, down 8.5%, announced that its Non-executive Director, Raj Chellaraj, has decided not to contest re-election and will retire from his role following the conclusion of the Annual General Meeting on 13 July 2018. LPA Group, down 35.4%, announced in its interim results for the six months ended 31 March 2018 that revenues increased to £13.9m from £10.8m in the same period last year. Its profit before tax marginally rose to £987k from £976k in the previous year despite its basic earnings per share falling to 6.95p from 7.37p. The Board declared an interim dividend of 1.1p per share, payable on 26 September 2018. However, the company provided a downbeat trading outlook for the medium-term, mainly due to decline in Group’s order book.

 

UK markets finished mixed in the last week, after the Bank of England’s (BoE) chief economist voted in favour of an interest rate hike in BoE’s latest monetary policy meeting, raising expectations for a rate hike in August. The FTSE techMARK 100 index fell 0.2% to end at 4,785.9, while the FTSE AIM 100 index slid 0.8% to close at 5,734.9. However, the FTSE 100 index gained 0.6% to settle at 7,682.3.

US markets closed lower in the previous week, as increasing trade war tensions between the US and China continues to dent investor confidence. US building permits fell more-than-expected and existing home sales declined in May. The US current account deficit widened further in the first quarter of 2018. The DJIA index dropped 2% to end at 24,580.9, while the NASDAQ index fell 0.7% to close at 7,692.8.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap

Sector Break-up - No. of Comps.

Index movers

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, surged 13.9% to 10.3p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, shed 8.2% to 517.8p. The company announced that it is intending to raise approximately £1 billion via rights issue for funding the recently announced acquisition of Europac. The company will issue approximately 293.1 million new ordinary shares at 350p per share at a ratio of 3:11, representing nearly 27.3% of its current issued share capital. Berenberg Bank raised its target price on the stock to 630p from 570p and maintained its “Buy” rating. JP Morgan reiterated its “Overweight” rating on the stock with a target price of 600p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, declined 15.7% to 1500p.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, advanced 8.2% to 8.6p. Peel Hunt reissued its “Buy” rating on the stock.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, plummeted 35.4% to 105p and emerged as the top loser in the Cambridge Index, after the company stated that the medium-term trading would be challenging, on the back of fall in Group’s order book. The company, in its interim results for the six months ended 31 March 2018, announced that revenues increased to £13.9 million from £10.8 million in the same period last year. Moreover, its profit before tax marginally rose to £0.987 million from £0.976 million in the previous year. However, its basic earnings per share fell to 6.95p from 7.37p. The Board declared an interim dividend of 1.1p per share, payable on 26 September 2018.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, eased 8.5% to 183p. The company announced that its Non-executive Director, Raj Chellaraj has decided not to contest re-election and will retire from his role following the conclusion of the Annual General Meeting on 13 July 2018.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, jumped 9.9% to 39p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, rallied 25.6% to 83.5p and emerged as the top gainer in the Cambridge Index. The company announced that its SmartSpace division has bagged a new contract from a North American military training solutions provider. Under the terms of the contract, Ubisense will offer real-time location services and 3D view of the entire environment, aimed at improving efficiency and effectiveness of military training. The company expects the initial revenues of nearly £4 million to be recognized in 2018, along with an agreement for same sized orders in 2019.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, soared 16.9% to 7.2p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, dropped 10.8% to 280p.

Other movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, rose 4.1% to 1352p. The company announced that Peter Allen has been appointed as a Non-Executive Chairman, with immediate effect. As a result, Louise Patten, interim Chairman of the company, will now resume her position as Senior Independent Director.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, climbed 6.6% to 2870p. The company announced that its Annual General Meeting will be held on 11 July 2018. Citigroup reissued its “Neutral” rating on the stock with a target price of 2800p. Numis restated its “Add” rating on the stock. JP Morgan Cazenove reaffirmed its “Overweight” rating on the stock with a target price of 3000p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, edged 0.9% higher to 170p. The company announced that it is planning to launch a new software namely, CANTAB BrainHealth, which aims to assess and improve mental health and well-being at workplace. The company will launch the CANTAB BrainHealth in the second half of 2018, which will accurately measure and monitor cognitive health and performance of an individual and ultimately fight mental health crisis globally.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, eased 3.8% to 38.5p. The company, in its trading update, announced that the order book of Bulgin is considerably stronger, as compared to the previous comparable period. Moreover, it expects the sales for the half year to be at least £1 million more than previous year’s sales of £12.5 million. Looking at the current market demand and strong orders, the Board expects the full year sales to be more than £27.3 million achieved in the prior year.

Greene King PLC

Shares of pub operator, Greene King PLC, gained 2.7% to 636.8p. Numis reaffirmed its “Reduce” rating on the stock. Peel Hunt reissued its “Add” rating on the stock with a target price of 700p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, edged 1.9% lower to 3690p. The company announced that it will hold its Annual General Meeting on 26 July 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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