Cambridge Index

Cambridge Index eases 0.5%

The Cambridge index declined 128 points or 0.5% to close at 24848.9, as index heavyweights including Johnson Matthey and DS Smith posted weekly losses to their share prices. Johnson Matthey, down 1.9%, today, announced the appointment of Doug Webb as a Non-Executive Director, with effect from 02 September 2019. HSBC reissued its “Buy” rating on the stock with a target price of 3650p. DS Smith, down 0.9%, announced a partnership with Ellen MacArthur Foundation to accelerate its circular economy drive and support innovation across the business, including recycling and carbon-efficiency in e-commerce. JPMorgan Chase & Co. raised its target price on Greene King, up 2%, to 720p from 520p and gave a “Neutral” rating.

Amino Technologies, up 5.2%, announced the first installation of AminoTV on a multi-tenant platform at Dutch cable and internet service providers, DELTA and Caiway. DELTA and Caiway will continue to operate as separate brands but with an integrated pay-TV operation through AminoTV's end-to-end multiscreen video platform. FinnCap restated its “Corporate” rating on the stock. Liberum Capital reaffirmed its “Buy” rating on Frontier Developments, up 0.9%.

Cambridge Cognition Holdings, down 3.5%, announced the retirement of Michael Lewis and Nicholas Kerton from the role of Non-Executive Directors. Moreover, Matthew Stork, Chief Operating Officer, has been appointed as the Chief Executive Officer (CEO), after Steven Powell stepped down as CEO, in order to be appointed as Chairman of the Board of Directors. FinnCap reconfirmed its “Corporate” rating on the stock. Horizon Discovery Group, down 5.6%, announced that its Annual General Meeting will be held on 18 June 2019. Peel Hunt slashed its target price on the stock to 177p from 171p and gave a “Hold” rating. LPA Group, down 8.7%, in its trading update, announced that its annual revenue will suffer a hit of £3m, citing continuous delays in the delivery schedules. LPA confirmed that no contracts were lost but the delivery has been postponed to a further period. Separately, the company announced that it has received two substantial electro-mechanical solutions contracts for the UK market as well as Far East export worth £1.7m and £0.8m, respectively.

UK markets mostly lower last week, led by losses in energy and housebuilding sector stocks. On the data front, the UK consumer price index advanced less than expected in April, while public sector net borrowing dropped to its lowest level since 2007 in April. On the contrary, Britain’s retail sales rose more than anticipated in April. In major news, the UK Prime Minister, Theresa May, announced her decision to resign from her post on 07 June. The FTSE 100 index declined 1% to settle at 7277.7, while the FTSE AIM 100 index rose 0.4% to close at 5074.06. Meanwhile, the FTSE techMARK 100 index lost 1% to end at 4975.2.

US markets ended in the red in the previous week, amid losses in technology sector stocks. On the macro front, the US manufacturing PMI dropped to its lowest level in 9 years in May, while durable goods orders fell more than anticipated in April. Furthermore, the US new home sales tumbled in April. In other major news, minutes of the US Fed’s May meeting showed that policymakers are in no rush for a near-term move in monetary policy, as inflation is likely to remain subdued. The DJIA index fell 0.7% to end at 25585.7, while the NASDAQ index lost 2.3% to close at 7637.0.


The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Sector Break-up - No. of Comps.

Index movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, advanced 5.2% to 85p. The company announced the first installation of AminoTV on a multi-tenant platform at Dutch cable and internet service providers, DELTA and Caiway. DELTA and Caiway will continue to operate as separate brands but with an integrated pay-TV operation through AminoTV's end-to-end multiscreen video platform. FinnCap restated its “Corporate” rating on the stock.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, rose 2.3% to 536p.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, surged 10% to 5.5p and emerged as the top gainer in the Cambridge Index.

Greene King PLC

Shares of pub operator, Greene King PLC, added 2% to 635.4p. JPMorgan Chase & Co. raised its target price on the stock to 720p from 520p and gave a “Neutral” 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, dropped 5.6% to 165.2p. The company announced that its Annual General Meeting will be held on 18 June 2019. Peel Hunt slashed its target price on the stock to 177p from 171p and gave a “Hold” rating.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, plummeted 12.7% to 281.6p.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro-mechanical systems, tumbled 8.7% to 94.5p. The company, in its trading update, announced that its annual revenue will suffer a hit of £3 million, citing continuous delays in the delivery schedules. LPA confirmed that no contracts were lost but the delivery has been postponed to a further period. Separately, the company announced that it has received two substantial electro-mechanical solutions contracts for the UK market as well as Far East export worth £1.7 million and £0.8 million, respectively.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, climbed 3.8% to 249p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, declined 8.3% to 52.8p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, sank 16% to 84p and emerged as the top loser in the Cambridge Index.

Other movers

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, declined 3.5% to 68p. The company announced the retirement of Michael Lewis and Nicholas Kerton from the role of Non-Executive Directors. Moreover, Matthew Stork, Chief Operating Officer, has been appointed as the Chief Executive Officer (CEO), after Steven Powell stepped down as a CEO, in order to be appointed as Chairman of the Board of Directors. FinnCap reconfirmed its “Corporate” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, edged 0.9% lower to 324.2p. The company announced a partnership with Ellen MacArthur Foundation to accelerate its circular economy drive and support innovation across the business, including recycling and carbon-efficiency in e-commerce.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, rose 0.9% to 1000p. Liberum Capital reaffirmed its “Buy” rating on the stock.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, eased 1.9% to 3130p. Today, the company announced the appointment of Doug Webb as a Non-Executive Director, with effect from 02 September 2019. HSBC reissued its “Buy” rating on the stock with a target price of 3650p.

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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