Cambridge Index

Cambridge Index adds 1.5%

The Cambridge index advanced 399.7 points or 1.5% to close at 26587.8, as the top five index heavyweights posted weekly gains to their share prices. DS Smith, up 1.1%, announced that its overall financial performance for the six months ended 31 October 2019 remains in line with expectations. It anticipates delivering decent progress in margins for the period, with an upgraded forecast of 10% to 12% return on sales. JP Morgan Cazenove lowered its target price on the stock to 420p from 440p and gave an “Overweight” rating. Greene King, unchanged at 849.2p, announced that following the successful completion of the acquisition scheme offer by CK Bidco, it has made an application to the FCA and the London Stock Exchange (LSE) for its delisting from the premium listing segment of the Official List and the trading of its shares on the LSE's main market. Peel Hunt reconfirmed its “Add” rating on Abcam, up 4.4%.

Scientific Digital Imaging, up 10%, announced that it has changed its name to SDI Group Plc. Bango, up 1.5%, announced an agreement with the South Korean big company, NHN ACE, to boost the digital marketing of the application targeting Korean mobile game users to gain new paying users and increase in-app purchase revenues. Sareum Holdings, up 1.5%, announced that its Chief Executive Officer (CEO) Dr Tim Mitchell made a presentation at the AACR-NCI-EORTC cancer conference in Boston, demonstrating the ability of SDC-1802, a novel selective TYK2/JAK1 inhibitor, to considerably reduce the tumor growth in cancers of the pancreas, colon, skin and kidney, plus B-cell lymphoma. Frontier Developments, up 1.1%, announced that it has appointed Ernst & Young as its new auditor, with immediate effect. Checkit, up 0.9%, announced that it has proposed a tender offer to qualifying shareholders to return around £81m through two ordinary shares for every three ordinary shares for an offer price of 65p per share. Tristel, up 0.3%, announced that its Annual General Meeting will be held on 17 December 2019.

IQGeo, unchanged at 45.5p, announced that Max Royde has been appointed as its Non-Executive Director, replacing Oliver Scott, who concurrently steps down as a Non-Executive Director, with immediate effect. Marshall Motor Holdings, down 5.3%, announced that it has appointed Nicky Dulieu as a Non-Executive Director and Chair of the Remuneration Committee with effect from 1 January 2020. CyanConnode Holdings, down 40.5%, in its trading update, announced that it is unlikely to achieve its previously set expectations for 2019, following a longer than expected delay in securing new substantial Indian contracts.

 

UK markets closed mostly lower last week, after the European Union leaders agreed to extend the Brexit deadline until 31 January 2020. The UK’s manufacturing PMI unexpectedly advanced in October, while the nation’s house prices rose in the same month. On the other hand, UK’s net consumer credit growth slowed to a 5-year low in September, while the consumer confidence eased to its lowest level since July 2013 in October. The FTSE 100 index declined 0.3% to settle at 7302.4, while the FTSE AIM 100 index fell 0.3% to close at 4543.6. Meanwhile, the FTSE techMARK 100 index gained 1.9% to end at 5407.9.

US markets ended higher in the previous week, lifted by gains in industrial and technology sector stocks. The US economy grew higher than expected in Q3 2019, while the non-farm payrolls advanced more than anticipated in October. Further, the US manufacturing sector activity rose in October, whereas the pending home sales increased by its fastest pace since December 2017 in September. The US Fed cut its benchmark interest rate by 25 basis points to a target range of 1.5% to 1.75%, due to a slowdown in the US economic growth and ongoing trade tensions. The DJIA index rose 1.4% to end at 27347.4, while the NASDAQ index gained 1.7% to close at 8386.4.


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, advanced 4.4% to 1203p. Peel Hunt reconfirmed its “Add” rating on the stock.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, added 1.5% to 132.5p. The company announced that it has entered into an agreement with the South Korean big data digital advertisement company, NHN ACE, to boost the digital marketing of the application targeting Korean mobile game users in order to gain new paying users as well as increase in-app purchase revenues, while reducing marketing costs.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, tanked 40.5% to 2.5p and emerged as the top loser in the Cambridge Index. The company, in its trading update, announced that it is unlikely to achieve its previously set expectations for 2019, following a longer than expected delay in securing new substantial Indian contracts. Moreover, the company has reviewed its order book and notified that it is still in discussion with NIK LLC regarding the receivable order worth $48 million announced in 2017 that were to be deployed within a period of three years. However, CyanConnode believes that the revenue will not be recovered in the near term.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, dropped 4.5% to 320p.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, skyrocketed 20.3% to 8p and emerged as the top gainer in the Cambridge Index.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, rose 2% to 3172p.

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, declined 5.3% to 135p. The company announced that it has appointed Nicky Dulieu as a Non-Executive Director and Chair of the Remuneration Committee with effect from 1 January 2020.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, fell 3.3% to 26.6p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, surged 10% to 62.7p. The company announced that it has changed its name to SDI Group Plc from Scientific Digital Imaging Plc.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, eased 1.9% to 47.4p.

Other movers

Checkit PLC

Checkit PLC (former Elektron Technology PLC), a provider of fast-moving engineered products, edged 0.9% higher to 56.5p. The company announced that it has proposed tender offer to qualifying shareholders in order to return around £81 million through two ordinary shares for every three ordinary shares for an offer price of 65p per share to all the shareholder register as at 22 November 2019.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, rose 1.1% to 362.9p. The company, in its pre-close trading update for the six months ended 31 October 2019, announced that its overall financial performance remains in line with expectations. DS Smith anticipates delivering decent progress in its margins for the period, with an upgraded forecast of 10% to 12% return on sales. Further, it expects to complete the sale of its Plastics division by the end of 2019, generating net profit of £400 million. JP Morgan Cazenove lowered its target price on the stock to 420p from 440p and gave an “Overweight” rating. Peel Hunt restated its “Buy” rating on the stock.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, advanced 1.1% to 1088p. The company announced that it has appointed Ernst & Young LLP as its new auditor, with immediate effect.

Greene King PLC

Shares of pub operator, Greene King PLC, remained unchanged at 849.2p. The company announced that following the successful completion of the acquisition scheme offer by CK Bidco, it has made an application to the FCA and the London Stock Exchange (LSE) for its delisting from the premium listing segment of the Official List and the trading of its shares on the LSE's main market. The cash consideration payable to Greene King shareholders will be settled by 13 November 2019.

IQGeo PLC

IQGeo PLC (former Ubisense Group PLC), a market leader of real-time location solutions, remained unchanged at 45.5p. The company announced that Max Royde has been appointed as a Non-Executive Director of the company with immediate effect. He will replace Oliver Scott, who concurrently steps down as a Non-Executive Director, with immediate effect.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, rose 1.5% to 0.3p. The company announced that its Chief Executive Officer (CEO) Dr Tim Mitchell made a presentation at the AACR-NCI-EORTC cancer conference in Boston, demonstrating the ability of SDC-1802, a novel selective TYK2/JAK1 inhibitor, to considerably reduce the tumor growth in cancers of the pancreas, colon, skin and kidney, plus B-cell lymphoma. The positive results yielded by the drug proved that it induces the anti-cancer activity through a novel immunotherapeutic mechanism of action stimulating the local immune system to attack cancer cells.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, added 0.3% to 325p. The company announced that its Annual General Meeting will be held on 17 December 2019 Lynx Business Park, Fordham Road, Snailwell, Newmarket, Cambridgeshire CB8 7NY.

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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