Cambridge Index

Cambridge Index jumps 5.5%

The Cambridge index advanced 1263.4 points or 5.5% to close at 24436, as four out of the top five index heavyweights posted weekly gains to their share prices. Peel Hunt reiterated its “Buy” rating on DS Smith, up 6.5%. Liberum Capital reconfirmed its “Buy” rating on Greene King, up 2.3%. Peel Hunt restated its “Hold” rating on Abcam, down 1.4%.

Elektron Technology, up 36%, in its trading update for the third quarter ended 31 October 2018, announced that its total sales surged 16.5% to £9.9m, largely supported by its Bulgin’s sales revenue of £8.8m, while its year to date sales soared by 17% to £25.8m. Elektron’s net cash stood at approximately £8.5m as at 31 October 2018. Further, the company announced that it now anticipates full year results to be significantly higher than prior projections, as it upgraded outlook for all its three divisions – Bulgin, Checkit and Elektron Eye Technology. Moreover, Bulgin's net margin is anticipated to be in the region of 30% for the full year, which is substantially ahead of both previous expectations and last year. Peel Hunt reissued its “Buy” rating on Kier Group, up 10.5%.

Peel Hunt reissued its “Buy” rating on Frontier Developments, down 0.5%. LPA Group, down 2.3%, in its trading update for the year ended 30 September 2018, announced today that it reported record sales for the period and expects full year results to be in line with market forecasts. Moreover, it disclosed that Lighting Systems has been awarded a £4m contract to upgrade the lighting on London's Central and Waterloo & City lines rolling stock. Horizon Discovery Group, down 3%, announced that it has entered into a collaboration with Belgium-based Biocartis Group to develop a set of precisely defined cell line-derived reference standards to assist Biocartis’ Idylla microsatellite instability assay. Peel Hunt reissued its “Hold” rating on the stock.

UK markets ended in the green last week, lifted by gains in banking and energy sector stocks. On the data front, the UK net consumer credit rose in September, whereas the manufacturing PMI eased more than estimated in October. In major news, the Bank of England, in its October monetary policy meeting, kept its key interest rate and asset purchase programme unchanged, but signalled at faster interest rate hikes than current market expectations. The FTSE 100 index advanced 2.2% to settle at 7094.1, while the FTSE AIM 100 index rose 4.1% to close at 5277.0. Meanwhile, the FTSE techMARK 100 index gained 4.1% to end at 4399.1.

US markets ended higher in the previous week, amid upbeat corporate earnings report. In economic news, the US private sector employment climbed more than estimated in October, while the consumer confidence index rose to an 18-year high level in the same month. Additionally, the nation’s unemployment rate remained steady near its 49-year low in October. On the other hand, US ISM manufacturing PMI slid in October, whereas the nation’s personal income dropped to its lowest level since June 2017 in September. The DJIA index rose 2.4% to end at 25270.8, while the NASDAQ index gained 2.6% to close at 7356.9.


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, rallied 16.2% to 132.5p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, slipped 1.5% to 10p.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast-moving engineered products, skyrocketed 36% to 45p and emerged as the top gainer in the Cambridge Index. The company, in its trading update for the third quarter ended 31 October 2018, announced that its total sales surged 16.5% to £9.9 million, largely supported by its Bulgin’s sales revenue of £8.8 million, while its year to date sales soared by 17% to £25.8 million. Elektron’s net cash stood at approximately £8.5 million as at 31 October 2018. Further, the company announced that it now anticipates full year results to be significantly higher than prior projections, as it upgraded outlook for all its three divisions – Bulgin, Checkit and Elektron Eye Technology. Moreover, Bulgin's net margin is anticipated to be in the region of 30% for the full year, which is substantially ahead of both previous expectations and last year.

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, dropped 3% to 195p. The company announced that it has entered into a collaboration with Belgium-based Biocartis Group to develop a set of precisely defined cell line-derived reference standards to assist Biocartis’ Idylla microsatellite instability assay. Peel Hunt reissued its “Hold” rating on the stock.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, surged 10.5% to 920p. Peel Hunt reissued its “Buy” rating on the stock.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, fell 2.3% to 106p. Today, the company, in its trading update for the year ended 30 September 2018, announced that it reported record sales for the period and expects full year results to be in line with market forecasts. Moreover, it disclosed that Lighting Systems has been awarded a £4 million contract to upgrade the lighting on London's Central and Waterloo & City lines rolling stock.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, declined 5.5% to 55.5p and emerged as the top loser in the Cambridge Index.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, eased 1.8% to 378p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, jumped 8.8% to 40p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, soared 10.8% to 257.5p.

Other movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, declined 1.4% to 1243p. Peel Hunt restated its “Hold” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, advanced 6.5% to 389.9p. Peel Hunt reiterated its “Buy” rating on the stock.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, declined 0.5% to 1000p. Peel Hunt reissued its “Buy” rating on the stock.

Greene King PLC

Shares of pub operator, Greene King PLC, advanced 2.3% to 497.7p. Liberum Capital reconfirmed its “Buy” rating on the stock.

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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