Cambridge Index

Cambridge Index declines 2.5%

The Cambridge index declined 582.5 points or 2.5% to close at 22843.1, as index heavyweights such as AVEVA Group and DS Smith posted weekly losses to their share prices. Johnson Matthey, up 1.9%, announced that its half-yearly revenues rose to £7.1b from £6.5b, while profit before tax climbed to £224m from £205m. Liberum Capital reissued its “Buy” rating on the stock. AVEVA Group, down 10.9%, announced that its half-yearly revenues advanced to £336.5m from £215.2m in the same period last year. However, it reported a loss before tax of £5.5m, compared to a profit of £7.8m in the previous year. Barclays reiterated its “Overweight” rating on the stock. UBS Group reconfirmed its “Neutral” rating on the stock.

Ubisense Group, up 10.4%, announced a conditional agreement to sell its RTLS SmartSpace business unit to Investcorp Technology for a consideration of £35m, of which £30m is to be paid in cash on completion. Further, the company mentioned that it would be renamed to IQGeo Group post completion of sale. Xaar, up 0.8%, announced that its Xaar 5601 Thin Film printhead has been adopted by two new original equipment manufacturers, Neos and KELENN Technology, for impelling their product development in new markets.

Dialight, down 1.4%, announced that it has settled a negotiation claim within the group's insurance provisions regarding an accident of an oilfield worker affected in Schuylkill County. CyanConnode Holdings, down 3.5%, announced that it has achieved Frost & Sullivan’s Company of the Year Award for 2018. Separately, Cyanconnode announced a partnership contract with DS Technology DWC for distributing its RF Mesh Networks and Ominmesh platforms. Tristel, down 4.2%, announced that it has bought Ecomed Group for a consideration of €3.4m in cash and €1.6m through issue of ordinary shares. Furthermore, it announced that Ecomed’s Chief Executive Officer, Bart Leemans has joined the company as an Executive Director. FinnCap reaffirmed its “Corporate” rating on the stock. Gaming Realms, down 6.3%, announced that its B2B software division, Alchemy Bet, has entered into an agreement with River Game Operations to form a new casino brand, Casonic, in the Scandinavian market. Separately, the company announced a 3-year revenue share agreement with Endemol Shine Gaming to distribute its Deal or No Deal Slingo. RhythmOne, down 6.5%, announced a collaborative partnership deal with Pixalate Inc to integrate the latter’s invalid traffic-detection technology into RhythmOne’s platform offering. Netcall, down 8%, announced that it will hold its Annual General Meeting on 12 December 2018. Liberum Capital restated its “Buy” rating on Frontier Developments, down 9.2%. JP Morgan Cazenove reissued its “Neutral” rating on Kier Group, down 10.9% with a target price of 994p.

UK markets ended mostly lower last week, led by losses in commodity sector stocks. In economic news, the British public sector net borrowing posted a more than expected deficit in October, while the house price index eased in November. In major news, the Bank of England Governor, Mark Carney, supported Prime Minister Theresa May’s Brexit deal, while warned that a no-deal Brexit could cause a large negative shock to the economy. The FTSE 100 index declined 0.9% to settle at 6952.9, while the FTSE AIM 100 index fell 4.3% to close at 4805.8. Meanwhile, the FTSE techMARK 100 index gained 1.5% to end at 4483.0.

US markets finished on a weaker footing in the previous week, amid losses in technology and energy sector stocks. On the data front, the US consumer sentiment index slid to a 3-month low in November, while durable goods orders fell more than anticipated in October. Also, the nation’s manufacturing and services PMI unexpectedly fell in November, whereas the weekly initial jobless claims advanced to a 4-month high level. On the contrary, the US existing home sales climbed more than estimated in October. The DJIA index fell 4.4% to end at 24286.0, while the NASDAQ index lost 4.3% to close at 6939.0.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, edged 1.5% higher to 1196p.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, sank 10.9% to 2390p and emerged as the top loser in the Cambridge Index. The company, in its interim results for the six months ended 30 September 2018, announced that revenues advanced to £336.5 million from £215.2 million in the same period last year. However, the company reported a loss before tax of £5.5 million, compared to a profit of £7.8 million in the previous year. Further, its basic loss per share stood at 3.61p compared to earnings of 7.03p in the same period. AVEVA proposed an interim dividend of 14p per share, payable on 01 February 2019 to shareholders on the register as at 04 January 2019. Barclays reiterated its “Overweight” rating on the stock. UBS Group reconfirmed its “Neutral” rating on the stock.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, tumbled 10.3% to 105p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, dropped 9.2% to 790p. Liberum Capital restated its “Buy” rating on the stock.

Greene King PLC

Shares of pub operator, Greene King PLC, climbed 3.1% to 511.6p.

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, rose 1.9% to 183.5p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, advanced 1.9% to 3058p. The company, in its interim results for the six months ended 30 September 2018, announced that revenues rose to £7.1 billion from £6.5 billion reported in the same period last year. Also, its profit before tax climbed to £224 million from £205 million, whereas basic earnings per share jumped to 106.1p from 87.9p in the prior year. The company has proposed an interim dividend of 23.25p per share, payable on 05 February 2019 to shareholders on the register as at 30 November 2018. Liberum Capital reissued its “Buy” rating on the stock.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, plummeted 10.9% to 763p. JP Morgan Cazenove reissued its “Neutral” rating on the stock with a target price of 994p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, declined 9.7% to 0.7p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, soared 10.4% to 69p and emerged as the top gainer in the Cambridge Index. The company announced that it has entered into a conditional agreement to sell its RTLS SmartSpace business unit to Investcorp Technology for a consideration of £35 million, of which £30 million is to be paid in cash on completion. Further, the company mentioned that it would be renamed to IQGeo Group PLC post completion of sale.

Other movers

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, eased 3.5% to 9.8p. The company announced that it has achieved Frost & Sullivan’s Company of the Year Award for 2018, citing innovation in the Smart Meter Industry and emerging as a Global Leader. Separately, Cyanconnode announced that it has entered the United Arab Emirates and Bahrain smart metering market by signing a partnership contract with DS Technology DWC LLC for distributing its RF Mesh Networks and Ominmesh platforms.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, slid 1.4% to 360p. The company announced that it has settled a negotiation claim within the group's insurance provisions for the 2014 claim regarding an accident of an oilfield worker affected in Schuylkill County drill rig.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, dropped 6.3% to 5.2p. The company announced that its B2B software division, Alchemy Bet, has entered into a gaming platform agreement with River Game Operations to form a new casino brand, Casonic, in the Scandinavian market. Separately, the company announced the signing of a 3-year revenue share agreement with Endemol Shine Gaming to distribute its Deal or No Deal Slingo and would extend its network of B2B operators across the UK, EU and US.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, dropped 8% to 40p. The company announced that it will hold its Annual General Meeting on 12 December 2018.

RhythmOne PLC

RhythmOne PLC (former Blinkx PLC), the leading video search engine, tumbled 6.5% to 145p. The company announced a collaborative partnership deal with Pixalate Inc to integrate the latter’s invalid traffic-detection and filtration technology for over-the-top ad impressions into RhythmOne’s platform offering.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, declined 4.2% to 218p. The company announced that it has bought Ecomed Services N.V. (Belgium), Ecomed Nederland B.V. (Netherlands) and Ecomed France SARL (France), jointly as Ecomed Group, for a consideration of €3.4 million in cash and €1.6 million through issue of ordinary shares. Furthermore, the company announced that Ecomed’s Chief Executive Officer, Bart Leemans has joined the company as an Executive Director. FinnCap reaffirmed its “Corporate” rating on the stock.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, rose 0.8% to 153p. The company announced that its Xaar 5601 Thin Film printhead has been adopted by two new original equipment manufacturers, Neos and KELENN Technology, for impelling their product development in new markets.

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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