Cambridge Index

Cambridge Index eases 1.0%

The Cambridge index declined 285.9 points or 1% to close at 27,652.2, as four out of the top five index heavyweights posted weekly losses to their share prices. Bank of America Merrill Lynch restated its “Buy” rating on AVEVA Group, up 1.1%, with a target price of 5400p. Barclays reissued its “Overweight” rating on the stock with a target price of 4700p. Abcam, down 2.2%, in its trading update for the six months ended 31 December 2019, announced that its total revenue is expected to advance by 10.8% to £138.2m as well as 8.3% on a constant currency basis. Further, the company has lowered its target for annual constant currency revenue growth to 9%-10% depending on its expected revenue phasing for the year. Also, the company anticipates its recently acquired businesses from Expedeon AG to generate around £4m of incremental revenue in the FY2020.

CyanConnode Holdings, up 7.6%, announced that it has obtained an official purchase order from partner Genus Power Infrastructures Limited worth £3.3m for the delivery of hardware, services, and head-end software with an annual maintenance contract that would enable a hybrid RF smart mesh and cellular communication platform accessible to 200k smart meters. The project is expected to be completed in a period of 15 month and generating around 80% of revenue within 2 years. 1Spatial, up 1.8%, in its business update, announced that all its units have recorded significant progress following securing major strategic partnerships. Moreover, it has been selected in a three-year open tender by The Bureau of Meteorology in Australia for the provision of software and services for a minimum consideration of A$1m.

Xaar, unchanged at 52.4p, announced that Ian Tichias will be appointed as the Chief Finance Officer and Director of the Board, with effect from 01 March 2020. Peel Hunt reaffirmed its “Buy” rating Kier Group, down 10%. 

UK markets ended in the red last week, weighed down by losses in banking and healthcare sector stocks. The UK’s services PMI unexpectedly rose in December, while the nation’s Halifax house price index advanced to its highest level since February 2007 in the same month. The FTSE 100 index declined 0.5% to settle at 7587.9, while the FTSE AIM 100 index fell 0.9% to close at 4917.3. Meanwhile, the FTSE techMARK 100 index lost 0.9% to end at 5954.2.

US markets ended higher in the previous week, amid fading worries over the US-Iran conflict. US non-farm payrolls advanced less than expected in December, while the nation’s services PMI rose in the same month. Further, the US private sector employment climbed to an 8-month high level in December, while the non-manufacturing PMI increased more than estimated in the same month. Also, the US trade deficit narrowed in November. The DJIA index rose 0.7% to end at 28823.8, while the NASDAQ index gained 1.8% to close at 9178.9.


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, eased 2.2% to 1321p. The company, in its trading update for the six months ended 31 December 2019, announced that its total revenue is expected to advance by 10.8% to £138.2 million as well as 8.3% on a constant currency basis. Further, the company has lowered its target for annual constant currency revenue growth to 9%-10% depending on its expected revenue phasing for the year. Also, the company anticipates its recently acquired businesses from Expedeon AG to generate around £4 million of incremental revenue in the FY2020.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, skyrocketed 21.4% to 34p and emerged as the top gainer in the Cambridge Index.

Checkit PLC

Checkit PLC (former Elektron Technology PLC), a provider of fast moving engineered products, declined 4.5% to 32p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, advanced 7.6% to 3.2p. The company announced that it has obtained an official purchase order from partner Genus Power Infrastructures Limited worth £3.3 million for the delivery hardware, services, and head-end software with an annual maintenance contract that would enable a hybrid RF smart mesh and cellular communication platform accessible to 0.2 million smart meters. The project is expected to be completed in a period of 15 month and generating around 80% of revenue within 2 years.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, fell 2.9% to 375.7p.

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, dropped 3.1% to 144.4p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, plummeted 10% to 82.5p and emerged as the top loser in the Cambridge Index. Peel Hunt reaffirmed its “Buy” rating on the stock.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, surged 10.6% to 104.5p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, rallied 18.1% to 0.4p.

SDI PLC

SDI PLC (former Scientific Digital Imaging PLC), a digital imaging technology company, jumped 6.4% to 83p.

Other movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, rose 1.8% to 28p. The company, in its business update, announced that all its units have recorded significant progress following securing major strategic partnerships. Moreover, it has been selected in a three-year open tender by The Bureau of Meteorology in Australia for the provision of software and services for a minimum consideration of A$1million.

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, gained 1.1% to 4744p. Bank of America Merrill Lynch restated its “Buy” rating on the stock with a target price of 5400p. Barclays reissued its “Overweight” rating on the stock with a target price of 4700p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, remained unchanged at 52.4p. The company announced that Ian Tichias will be appointed as the Chief Finance Officer and Director of the Board, with effect from 01 March 2020.

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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