News

Cambridge Index marginally rise

  • Published on 27 January 2020

The Cambridge index slightly rose by 6.8 points to close at 27,957.3, as gains to the share price of AVEVA Group were overshadowed by losses in Johnson Matthey and DS Smith. JP Morgan Cazenove reiterated its “Overweight” rating on AVEVA Group, up 1.4%, with a target price of 5,200p. Goldman Sachs raised its target price on the stock to 5,200p from 4,700p and gave a “Neutral” rating. Berenberg Bank reiterated its “Buy” rating on Frontier Developments, up 6.1%, with a target price of 1,600p. 

Horizon Discovery Group, up 3.2%, announced that it has signed a licensing agreement with NGM Biopharmaceuticals Inc. to grant its gene-edited Glutamine Synthetase knockout Chinese Hamster Ovary K1 cell line to the latter, in a bid to support its broad research and development efforts. Bango, up 1.4%, announced the appointment of Ray Anderson as the Executive Chair, following the resignation of David Sear from the Board as Chair. Also, the firm stated that Paul Larbey has been appointed as the Chief Executive Officer, while Eric Peacock took the position of Senior Independent Director.

LPA Group, unchanged at 96.0p, in its trading update for the year ended 30 September 2019, announced that its record order entry of £27.0m was achieved, despite challenging conditions, and further expects to meet expectations for the year. Additionally, the company announced that it has received a secured a five-year LED lighting system contract from Austrian Federal Railways and another contract for electro-mechanical assemblies for the UK rail sector. Netcall, down 10.3%, in its trading update for six months ended 31 December 2019, announced that the performance was in line with its expectations and further expects interim revenue and adjusted EBITDA to be around £12.3m and £2.1m, respectively. Further, the company announced that the demand for Low-code platforms increased and Low-code ACV rose to £5.1m. The company’s interim results for six months ended 31 December 2019 will be released on 27 February 2020. FinnCap reaffirmed its “Corporate” Rating on the stock.

UK markets ended mostly weaker last week. On the data front, the UK unemployment rate remained at its lowest level since the 1970s in the three months to November period. Also, positive manufacturing and services sector data for January is likely to stave off prospects of interest rate cut by the UK central bank at its policy meeting this week. The FTSE 100 index declined 1.2% to settle at 7585.98, while the FTSE AIM 100 index fell 1.2% to close at 4940.65. Meanwhile, the FTSE techMARK 100 index gained 1.1% to end at 6140.09.

US markets closed lower in the previous week, weighed down by losses in technology and financial sector stocks as well as escalating fears over the outbreak of the deadly Wuhan coronavirus in China. In economic news, the US Chicago Fed national activity index dropped in December, while the weekly mortgage applications fell to a 3-month low in the last week. Also, the US manufacturing PMI declined to a 3-month low in January. Meanwhile, the US Markit services PMI jumped to a 10-month high in January. The DJIA index fell 1.2% to end at 28989.73, while the NASDAQ index lost 0.8% to close at 9314.91.


Sector Break-up - No. of Comps.

The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - Market Cap.

Table 3 Cambridge Index  Top 5 Weights

Index movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, dropped 3.6% to 27.0p.

Checkit PLC

Checkit PLC (former Elektron Technology PLC), a provider of fast-moving engineered products, slumped 7.9% to 29.0p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, surged 14.5% to 3.6p and emerged as the top gainer in the Cambridge Index.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, jumped 6.1% to 1,400.0p. Berenberg Bank reiterated its “Buy” rating on the stock with a target price of 1,600p. 

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, rose 3.2% to 149.7p. The company announced that it has signed a licensing agreement with NGM Biopharmaceuticals Inc. to grant its gene-edited Glutamine Synthetase knockout Chinese Hamster Ovary K1 cell line to the latter, in a bid to support its broad research and development efforts.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, advanced 4.9% to 82.3p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, tumbled 10.3% to 35.0p. The company, in its trading update for six months ended 31 December 2019, announced that the performance was in line with its expectations and further expects interim revenue and adjusted EBITDA to be around £12.3 million and £2.1 million, respectively. Further, the company announced that the demand for Low-code platforms increased and Low-code ACV rose to £5.1 million. The company’s interim results for six months ended 31 December 2019 will be released on 27 February 2020. FinnCap reaffirmed its “Corporate” Rating on the stock.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, declined 7.2% to 206.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, plummeted 12.2% to 0.4p and emerged as the top loser in the Cambridge Index.

SDI PLC

SDI PLC (former Scientific Digital Imaging PLC), a digital imaging technology company, climbed 4% to 91.5p.

Other movers

AVEVA Group PLC

Engineering technology company, AVEVA Group PLC, rose 1.4% to 5,125.0p. JP Morgan Cazenove reiterated its “Overweight” rating on the stock with a target price of 5,200p. Goldman Sachs raised its target price on the stock to 5,200p from 4,700p and gave a “Neutral” rating.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, advanced 1.4% to 108.0p. The company announced the appointment of Ray Anderson as the Executive Chair, following the resignation of David Sear from the Board as Chair. Also, the firm stated that Paul Larbey has been appointed as the Chief Executive Officer, while Eric Peacock took the position of Senior Independent Director.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro-mechanical systems, remained unchanged at 96.0p. The company, in its trading update for the year ended 30 September 2019, announced that its record order entry of £27.0 million was achieved, despite challenging conditions, and further expects to meet expectations for the year. Additionally, the company announced that it has received a secured a five-year LED lighting system contract from Austrian Federal Railways and another contract for electro-mechanical assemblies for the UK rail sector.

The Cambridge & FTSE AIM 100 Index Movement

Sector Break-up - No. of Comps.

Sector Break-up - Market Cap.

Table 3 Cambridge Index  Top 5 Weights

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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