Cambridge Index

Cambridge Index ends flat

The Cambridge index finished almost unchanged to close at 27,807.7 last week, as losses in index heavyweights such as Johnson Matthey and Abcam were offset by gains in DS Smith and AVEVA Group. DS Smith, up 0.9%, announced that it has entered into an agreement to acquire US-based Corrugated Container Corporation, operating in four areas in North America namely, Tennessee, North Carolina and two sites in Virginia. The company further stated that the acquisition is in line with medium-term financial targets and will increase the box-making capacity of the company. Numis Securities reissued its “Add” rating on AVEVA Group, up 0.3%, with a target price of 2050p.

Panmure Gordon restated its “Buy” rating on Vernalis, up 41.0%, with a target price of 65p. Numis Securities reissued its “Hold” rating on Frontier Developments, up 8.7%, with a target price of 300p. RhythmOne, up 8.2%, today announced the resignation of Ted Hastings as the Chief Executive Officer and a member of the Board of Directors. Numis Securities restated its “Buy” rating on the stock with a target price of 52p. Gaming Realms, up 4.7%, today announced a three-year licensing deal with Sony Pictures Television to create and host new games on its proprietary platform. 1Spatial, up 3.1%, in its final results for the year ended 31 January 2018, announced that its revenues increased to £16.9m from £15.1m reported in the last year, while its loss before tax narrowed to £1.9m from £15.9m. FinnCap reissued its “Corporate” rating on Netcall, up 2.1%, with a target price of 70p.

FinnCap reissued its “Corporate” rating on Scientific Digital Imaging, down 1.2%, with a target price of 20p. Peel Hunt reaffirmed its “Buy” rating on Kier Group, down 2.9%, with a target price of 1600p. CyanConnode Holdings, down 6.7%, announced that it has received a $3.2m purchase order from Larsen & Toubro for installing IPv6-based smart metering solution to create a secure IoT network. Nearly 15 zones in Indore city would fall under the program, led by the state-owned Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited, which would deploy CyanConnode’s Omnimesh Advanced Metering Infrastructure solution. Beaufort Securities restated its “Speculative Buy” rating on Horizon Discovery Group, down 11.7%, with a target price of 200p. Numis Securities reaffirmed its “Buy” rating on the stock with a target price of 262p.

UK markets mostly higher in the last week, after the British retail sales rose to an 18-month high in April. Moreover, the nation’s economy expanded in line with market expectations for the first quarter of 2018. Meanwhile, UK’s public-sector net borrowing dropped to its lowest level since 2007 in April and the annual consumer price inflation slid to a 13-month low in April. The FTSE techMARK 100 index jumped 1.1% to end at 4,792.2, whereas the FTSE AIM 100 index marginally rose to close at 5,681.4. Meanwhile, the FTSE 100 index dropped 0.6% to settle at 7,730.3.

US markets ended in positive region in the prior week, after the US Federal Reserve’s latest monetary policy meeting minutes signalled that rising inflation would not affect the future pace of interest rate hikes. On the data front, the US manufacturing sector activity jumped to a September 2014 high in May. Meanwhile, the nation’s durable goods orders fell more-than-expected in April, while the consumer sentiment index surprisingly dropped in May. The DJIA index advanced 0.2% to end at 24,753.1, while the NASDAQ index gained 1.1% to close at 7,433.9.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, declined 8.5% to 155.5p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, eased 6.7% to 10.5p. The company announced that it has received a $3.2 million purchase order from Larsen & Toubro (L&T) for installing IPv6-based smart metering solution to create a secure IoT network. Nearly 15 zones in Indore city would fall under the program, led by the state-owned Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited, which would deploy CyanConnode’s Omnimesh Advanced Metering Infrastructure solution.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, climbed 8.7% to 1810p. Numis Securities reissued its “Hold” rating on the stock with a target price of 300p.

Greene King PLC

Shares of pub operator, Greene King PLC, advanced 6.8% to 584.4p.

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, plummeted 11.7% to 166.0p and emerged as the top loser in the Cambridge Index. Beaufort Securities restated its “Speculative Buy” rating on the stock with a target price of 200p. Numis Securities reaffirmed its “Buy” rating on the stock with a target price of 262p.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, increased 8.2% to 238p. Today, the company announced the resignation of Ted Hastings as the Chief Executive Officer and a member of the Board of Directors. Numis Securities restated its “Buy” rating on the stock with a target price of 52p.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, slipped 5.6% to 238p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, soared 11.2% to 59.5p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, rallied 41.0% to 6.8p and emerged as the top gainer in the Cambridge Index. Panmure Gordon restated its “Buy” rating on the stock with a target price of 65p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, dropped 8.9% to 341.8p.

Other movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, rose 3.1% to 3.4p. The company, in its final results for the year ended 31 January 2018, announced that revenues increased to £16.9 million from £15.1 million reported in the last year. Meanwhile, the company’s loss before tax narrowed considerably to £1.9 million from £15.9 million in the previous year. Likewise, its basic loss per share fell to 0.32p from 2.51p in the prior year.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, rose 0.3% to 2366p. Numis Securities reissued its “Add” rating on the stock with a target price of 2050p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, jumped 0.9% to 559.4p. The company announced that it has entered into an agreement to acquire US-based Corrugated Container Corporation, operating in four areas in North America namely, Tennessee, North Carolina and two sites in Virginia. The company further stated that the acquisition is in line with medium-term financial targets and will increase the box-making capacity of the company.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, advanced 4.7% to 7.8p. Today, the company announced a three-year licensing deal with Sony Pictures Television to create and host new games on its proprietary platform.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, fell 2.9% to 1055p. Peel Hunt reaffirmed its “Buy” rating on the stock with a target price of 1600p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, climbed 2.1% to 60.8p. FinnCap reissued its “Corporate” rating on the stock with a target price of 70p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, fell 1.2% to 40p. FinnCap reissued its “Corporate” rating on the stock with a target price of 20p.

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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