Cambridge Index

Cambridge Index falls 1.1%

The Cambridge index declined 278.4 points or 1.1% to close at 26010.4, as index heavyweights such as Johnson Matthey and Abcam posted weekly losses to their share prices. Barclays lifted its target price on AVEVA Group, up 0.4%, to 4100p from 3370p and gave an “Overweight” rating. DS Smith, up 0.7%, announced the appointment of Celia Baxter as a Non-Executive Director with effect from 9 October 2019, following the retirement of Kathleen O'Donovan from the Board on 3 September 2019. BNP Paribas lowered its target price on the stock to 300p from 340p and gave an “Underperform” rating.

Bango, up 27.9%, in its trading update for the six months ended 30 June 2019, announced that it expects a robust revenue growth of 64% to £4.3m, with end user spend more than doubling to around £465m. CyanConnode Holdings, up 15.7%, announced that it has received a follow-on order from Genus Power Infrastructures Ltd to deploy 4,050 smart metering units in India. Moreover, it bagged a £200k order from Toshiba Information Systems (UK) Ltd for service enhancements. Separately, the company secured a follow-on Nordic order worth nearly €500k. Xaar, up 10.1%, announced that its half-yearly performance remains on track to meet the Board’s forecast and anticipates revenue of around £23m. Peel Hunt reaffirmed its “Hold” rating on the stock. Horizon Discovery Group, up 6.2%, announced that Celyad’s CAR-T cell-based therapies development, that utilises Horizon's optimized SMARTvector shRNA technology, has secured FDA Acceptance of Investigational New Drug (IND) application for the autologous NKG2D based CAR-T cell therapy CYAD-02. The company is entitled to receive an undisclosed milestone payment for the successful IND filing. Amino Technologies, up 3%, announced that its half-yearly revenues declined to $34.6m from $41.2m reported in H1 2018. However, Amino reported a profit before tax of $2.5m, against a loss of $0.2m in the previous year. The board declared an interim dividend of 1.68p per share.

Science Group, unchanged at 199p, announced that it is unlikely for Frontier Smart Technologies Group Limited’s (Frontier) discussions with the alternative company to result into a possible offer. The company does not intend to raise its offer of 35p per share and urges Frontier shareholders to accept its offer or sell their shares through the Panmure Gordon Trading Facility. Separately, it purchased 2.4m shares of Frontier for 35p per share, taking its shareholding to 35.8%. Marshall Motor Holdings, down 4.1%, in its trading statement for the six months ended 30 June 2019, announced that it anticipates to report profit before tax in line with Board’s expectations, as a positive performance from its retail as well as new fleet vehicle unit sales helped offset the impact of challenging market conditions.

 

UK markets closed lower last week, led by losses in financial and utilities sector stocks. The British economy grew more than expected in the March-May period, while the nation’s trade deficit unexpectedly narrowed in May. Meanwhile, UK’s industrial production rose less than anticipated in May. The Bank of England warned that the increasing likelihood of a no-deal Brexit could cause massive disruption to the UK economy. The FTSE 100 index declined 0.6% to settle at 7506.0, while the FTSE AIM 100 index fell 0.1% to close at 4727.5. Meanwhile, the FTSE techMARK 100 index lost 0.9% to end at 5181.6.

US markets ended higher in the previous week, supported by gains in healthcare and technology sector stocks. US core inflation advanced by the most since January 2018 in June, whereas the consumer credit rose more than expected in May. The US NFIB small business optimism index fell in June. The DJIA index rose 1.5% to end at 27332.0, while the NASDAQ index gained 1% to close at 8244.1.


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, plummeted 8.3% to 1350p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, skyrocketed 27.9% to 105.5p and emerged as the top gainer in the Cambridge Index. The company, in its trading update for the six months ended 30 June 2019, announced that it expects a robust revenue growth of 64% to £4.3 million, with end user spend (EUS) more than doubling to around £465 million from £220 million in H1 2018. The Board expects revenue and EUS to maintain significant growth in 2020 and beyond, led by recent wins signed with Google Play, Amazon and Microsoft routes.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, declined 6.2% to 60.5p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, rallied 15.7% to 6.3p. The company announced that it has received a follow-on order from Genus Power Infrastructures Ltd to deploy 4,050 smart metering units at Uttar Gujarat Vij Company Ltd in India. Moreover, CyanConnode bagged a £0.2 million order from Toshiba Information Systems (UK) Ltd for service enhancements relating to the UK Smart Metering Implementation Programme. Separately, the company secured a follow-on Nordic order worth nearly €0.5 million for its legacy hardware and software solutions.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, advanced 9.3% to 5.9p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, sank 21.1% to 83.6p and emerged as the top loser in the Cambridge Index.

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, fell 4.1% to 140p. The company, in its trading statement for the six months ended 30 June 2019, announced that it anticipates to report profit before tax in line with Board’s expectations, as a positive performance from its retail as well as new fleet vehicle unit sales helped offset the impact of challenging market conditions. However, Marshall provided a cautious outlook for the full year, amid weak consumer confidence and Brexit uncertainties.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, climbed 7.2% to 252p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, dropped 5.7% to 49.5p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, jumped 10.1% to 98p. The company, in its trading update for the six months ended 30 June 2019, announced that its performance remains on track to meet the Board’s forecast and anticipates a revenue of around £23 million. Overall revenue for the period stood at £27 million, however it was hit by a revenue reversal of £4 million due to Xaar 1201 inventory being returned to the business. Peel Hunt reaffirmed its “Hold” rating on the stock.

Other movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, rose 3% to 119p. The company, in its interim results for the six months ended 31 May 2019, announced that revenues declined to $34.6 million from $41.2 million reported in the same period last year. However, Amino reported a profit before tax of $2.5 million compared to a loss of $0.2 million reported in the previous year. The basic earnings per share advanced to 3.28c from 0.21c in the previous year. The board declared an interim dividend of 1.68p per share, payable on 2 September 2019. FinnCap reaffirmed its “Corporate” rating on the stock.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, edged 0.4% higher to 3946p. Barclays lifted its target price on the stock to 4100p from 3370p and gave an “Overweight” rating.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, added 0.7% to 367p. The company announced the appointment of Celia Baxter as a Non-Executive Director with effect from 9 October 2019, following the retirement of Kathleen O'Donovan from the Board on 3 September 2019. BNP Paribas lowered its target price on the stock to 300p from 340p and gave an “Underperform” rating.

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, advanced 6.2% to 164.8p. The company announced that Celyad’s CAR-T cell-based therapies development, that utilises Horizon's optimized SMARTvector shRNA technology, has secured FDA Acceptance of Investigational New Drug (IND) application for the autologous NKG2D based CAR-T cell therapy CYAD-02. The company is entitled to receive an undisclosed milestone payment for the successful IND filing.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, remained unchanged at 199p. The company announced an update on its investment in Frontier Smart Technologies Group Limited (Frontier) that it is unlikely Frontier’s discussions with the alternative source will result into a possible offer. The company does not intend to raise its offer of 35p per share and urges Frontier shareholders to accept its offer or sell their shares through the Panmure Gordon Trading Facility. Separately, it purchased 2.4 million shares of Frontier for 35p per share, taking its shareholding to 35.8%.

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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