Cambridge Index

Cambridge Index falls 2.4%

The Cambridge index declined 571.6 points or 2.4% to close at 23176.6, as four out of the top five index heavyweights posted weekly losses to their share prices. DS Smith, down 5%, announced that its recently acquired firm, Europac, will delist from the Spanish stock exchanges by February end, after it receives the compulsory acquisition of the remaining 1.17% stake. Abcam, up 0.2%, announced the acquisition of Calico Biolabs with a view to widen its custom rabbit monoclonal production capabilities and strengthen customer relationships.

Horizon Discovery Group, up 4.6%, announced a strategic partnership agreement with Rutgers, The State University of New Jersey, USA, for the further enhancement and commercialisation of its gene editing technology, base editing. LPA Group, up 3.5%, announced that its annual revenues advanced to £28m from £22.5m in the previous year. Also, its profit before tax marginally rose to £2m from £1.9m in the last year. However, the basic earnings per share slightly eased to 14.3p from 14.4p in the prior year. The company’s Board proposed a final dividend of 1.8p per share. Kier Group, up 1.6%, in its trading update, announced that the Board anticipates the Group to meet its targets for the financial year ending 30 June 2019. Separately, the company announced the resignation of its Chief Executive Officer, Haydn Mursell, from the Board with immediate effect. As a result, the company’s Chairman, Philip Cox, will act as an Executive Chairman, and will run the Group’s operations along with Finance Director, Bev Dew, and the Chief Operating Officer, Claudio Veritiero. The stock received mostly positive reviews from various brokers.

Science Group, down 1.9%, announced the completion of its strategic review, in which it concluded that the prime use of the company’s capital resources must be to raise the scale of the Group through acquisitions and organic investments. Hence, it will continue its search for investment opportunities and acquisitions, especially in the UK, North America and Europe region. Meanwhile, the company stated that trading to the end of December 2018 was in line with the Board's expectations.  Sareum Holdings, down 4.3%, announced that Sierra Oncology’s Chief Scientific Officer, Dr. Christian Hassig, will give a presentation on "Addressing Intrinsic & Acquired PARP Inhibitor (PARPi) Resistance Through Chk1 Inhibition" at the DNA Damage Response (DDR) Therapeutics Summit in Boston, USA on 30 January 2019. Quixant, down 18.7%, in its trading update for the year ended 31 December 2018, announced that it expects to report Group revenues of around $115m, which is below the current market estimates of $120m, amid a decline in revenue from gaming monitors. As a result, the adjust profit before tax for 2018 will also be lower than market expectations of nearly $19m. Peel Hunt restated its “Buy” rating on the stock. FinnCap reconfirmed its “Corporate” rating on the stock. Canaccord Genuity reiterated its “Buy” rating on the stock.

UK markets ended in the red last week, weighed down by losses in commodity and banking sector stocks. In economic news, the UK mortgage approvals eased to its lowest level in 7 months in December, while the unemployment rate unexpectedly fell in the September-November 2018. The FTSE 100 index declined 2.3% to settle at 6809.2, while the FTSE AIM 100 index fell 0.3% to close at 4708.2. Meanwhile, the FTSE techMARK 100 index lost 1% to end at 4532.7.

US markets closed higher in the previous week, as upbeat earnings report from major companies lifted the market sentiment. On the data front, the US manufacturing PMI unexpectedly rose in January, whereas the housing price index advanced more than anticipated in November. Additionally, the US initial jobless claims surprisingly slid to an almost 50-year low level for the week ended 19 January 2019. On the other hand, the nation’s existing home sales fell to a 3-year low level in December. The DJIA index rose 0.1% to end at 24737.2, while the NASDAQ index gained 0.1% to close at 7164.9.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, dropped 7.5% to 31p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, tumbled 11.8% to 8.6p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, slid 5% to 320.5p. The company announced that its recently acquired firm, Europac, will delist from the Spanish stock exchanges by February end, after it receives the compulsory acquisition of the remaining 1.17% stake.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast-moving engineered products, advanced 3.8% to 46.5p.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, declined 8.7% to 4.7p.

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, climbed 4.6% to 170.5p and emerged as the top gainer in the Cambridge index. Today, the company announced a strategic partnership agreement with Rutgers, The State University of New Jersey, USA, for the further enhancement and commercialisation of its gene editing technology, base editing.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, rose 1.6% to 524p. The company, in its trading update, announced that the Board anticipates the Group to meet its targets for the financial year ending 30 June 2019. Separately, the company announced the resignation of its Chief Executive Officer, Haydn Mursell, from the Board with immediate effect. As a result, the company’s Chairman, Philip Cox, will act as an Executive Chairman, and will run the Group’s operations along with Finance Director, Bev Dew, and the Chief Operating Officer, Claudio Veritiero. Peel Hunt reaffirmed its “Buy” rating on the stock. Liberum Capital reiterated its “Buy” rating on the stock with a target price of 660p. Canaccord Genuity reissued its “Hold” rating on the stock with a target price of 525p.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, jumped 3.5% to 104p. The company, in its final results for the year ended 30 September 2018, announced that revenues advanced to £28 million from £22.5 million in the previous year. Also, its profit before tax marginally rose to £2 million from £1.9 million in the last year. However, the basic earnings per share slightly eased to 14.3p from 14.4p in the prior year. The company’s Board proposed a final dividend of 1.8p per share, which will be payable on 29 March 2019 to shareholders on the register as at 08 March 2019.

Marshall Motor Holdings PLC

Marshall Motor Holdings PLC, one of the UK's leading automotive retail and leasing groups representing a unique portfolio of prestige and volume brands and with the highest brand coverage of any dealer group in the UK, advanced 3.5% to 160.5p.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, plummeted 18.7% to 282.5p and emerged as the top loser in the Cambridge index. The company, in its trading update for the year ended 31 December 2018, announced that it expects to report Group revenues of around $115 million, which is below the current market estimates of $120 million, amid a decline in revenue from gaming monitors. As a result, the adjust profit before tax for 2018 will also be lower than market expectations of nearly $19 million. Meanwhile, the company expects the results for the year to 31 December 2018 to be released on 25 March 2019. Peel Hunt restated its “Buy” rating on the stock. FinnCap reconfirmed its “Corporate” rating on the stock. Canaccord Genuity reiterated its “Buy” rating on the stock.

Other movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, edged 0.2% higher to 1237p. Today, the company announced the acquisition of Calico Biolabs with a view to widen its custom rabbit monoclonal production capabilities and strengthen customer relationships.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, dropped 4.3% to 0.6p. The company announced that Sierra Oncology’s Chief Scientific Officer, Dr. Christian Hassig, will give a presentation on "Addressing Intrinsic & Acquired PARP Inhibitor (PARPi) Resistance Through Chk1 Inhibition" at the DNA Damage Response (DDR) Therapeutics Summit in Boston, USA on 30 January 2019.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, fell 1.9% to 210p. The company announced the completion of its strategic review, in which it concluded that the prime use of the company’s capital resources must be to raise the scale of the Group through acquisitions and organic investments. Hence, it will continue its search for investment opportunities and acquisitions, especially in the UK, North America and Europe region. Meanwhile, the company stated that trading to the end of December 2018 was in line with the Board's expectations.

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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