Cambridge Index

Cambridge Index jumps 6.3%

The Cambridge index advanced 6.1% or 1,477.85 points to settle at 25,519.8, as the top three index heavyweights posted weekly gains to their share prices. DS Smith, up 11%, announced that trading for the period was in line with its expectations with robust box volume growth since the first half of the year. Numis Securities restated its “Hold” rating on the stock with a target price of 530p. JPMorgan Chase & Co. reaffirmed its “Overweight” rating on the stock with a target price of 600p.

Ubisense Group, up 7%, announced that it has signed an agreement to re-organise its business in Japan. The company indicated that it will spin off its Japanese services business into a separate entity, which it has agreed to sell to a subsidiary of Japan’s FinTech Global Inc. for a gross consideration of around £700,000 on 30 March 2018; it will gain a 23% minority interest in the Japanese company. Elektron Technology, up 5.5%, announced that Food Standards Agency (FSA) has successfully carried out a three-month trial in five businesses using its Checkit digital platform. The FSA further stated that this technology can be used in food businesses to ensure quality and hygiene practices. Peel Hunt reissued its “Buy” rating on Kier Group, up 5.3%, with a target price of 1600p.

Numis Securities restated its “Buy” rating on Horizon Discovery Group, unchanged at 175p, with a target price of 300p. Peel Hunt reaffirmed its “Add” rating on Xaar, down 4.5%, with a target price of 420p. Netcall, down 11.6%, announced in its interim results for the six months ended 31 December 2017 that revenues increased to £10.7m. However, its profit before tax declined to £278,000. FinnCap lifted its target price on the stock to 75p from 70p.

UK markets ended higher in the last week, supported by gains in financial and housebuilding stocks. British services activity jumped more-than-expected in February. UK house prices grew at their slowest pace in five years, while its industrial production rose less-than-expected in January. The FTSE 100 index climbed 2.2% to settle at 7,224.5, while the FTSE AIM 100 index advanced 2.8% to close at 5,439.6. The FTSE techMARK 100 index rose 3.6% to end at 4,541.

US markets finished the previous week on a positive footing, following the US President’s announcement of imposing tariffs on some steel and aluminium imports. The US economy added the highest number of jobs in nearly two years in February, while ADP employment change advanced more-than-expected in the same month. US factory orders recorded their biggest fall in six months for January, while the number of Americans filing for unemployment benefits rose from a 48-year low level last week. The DJIA index advanced 3.3% to end at 25,335.7, while the NASDAQ index gained 4.2% to close at 7,560.8.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, surged 12.8% to 2060.0p and emerged as the top gainer in the Cambridge Index.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, fell 6.3% to 185.0p.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, slipped 5.7% to 532.0p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, advanced 11% to 510.2p. The company, in its trading update for the third quarter, announced that trading for the period was in line with its expectations with robust box volume growth since the first half of the year, that helped improving its efficiency and showed good progress with its e-commerce as well as its multi-national consumers. Numis Securities restated its “Hold” rating on the stock with a target price of 530.0p. JPMorgan Chase & Co. reaffirmed its “Overweight” rating on the stock with a target price of 600.0p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, increased 8.3% to 1240.0p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, rose 7.3% to 3250.0p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, dropped 11.6% to 43.3p. The company, in its interim results for the six months ended 31 December 2017, announced that revenues increased to £10.7 million from £8.1 million reported in the same period last year. However, the company’s profit before tax declined to £0.278 million from £0.921 million reported in the previous year. Its basic earnings per share stood at 0.13p, compared to earnings of 0.60p in the previous year. FinnCap lifted its target price on the stock to 75.0p from 70.0p and maintained a “Corporate” rating.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, eased 5.4% to 0.9p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, climbed 7% to 38.0p. The company announced that it has signed an agreement to re-organise its business in Japan. the company indicated that it will spin off its Japanese services business into a separate entity, which it has agreed to sell to a subsidiary of Japan’s FinTech Global Incorporated for a gross consideration of around £0.7m on 30 March 2018. Meanwhile, the company declared acquisition of 23.0% minority interest in its Japanese company.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, declined 15.4% to 4.2p and emerged as the top loser in the Cambridge Index.

Other movers

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, rose 5.5% to 29.0p. The company announced that Food Standards Agency (FSA) has successfully carried out a three-month trial in five businesses using its Checkit digital platform. FSA further stated that this technology can be used in food businesses to ensure the quality and hygiene practices.

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 175.0p. Numis Securities restated its “Buy” rating on the stock with a target price of 300.0p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, jumped 5.3% to 1031.0p. Peel Hunt reissued its “Buy” rating on the stock with a target price of 1600.0p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, dropped 4.5% to 320.0p. Peel Hunt reaffirmed its “Add” rating on the stock with a target price of 420.0p.

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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