The fortunes of the FTSE 100 and AIM 100 indices in 2023 so far couldn’t be any more different.
London’s blue-chip index, featuring oil giants such as BP and Shell, set a new all-time closing high last week and hit an intra-day peak of 7,943 points on Thursday.
By contrast, the AIM 100 roll call of growth companies closed at 4,236 points on Thursday, some way of its record of 6,427 set in April 2006.
The explanation is quite a simple one: The majority of Footsie companies are international and therefore largely insulated from rocketing inflation and roller coaster fiscal policy. The reverse is true for AIM stocks, which also suffer from the fact they are riskier than their more illustrious peers.
Over the week the contrasting fortunes of the two benchmarks was illustrated with the AIM All share off 2.3 % at 4,197 points, while the FTSE 100 held just about steady at 7,877.
With that being said, it hasn’t been all bad news for AIM quoted companies, with mining focused Trident Royalties and CleanTech Lithium hitting new all-time highs.
Trident Royalties’ shares were up 7% over the last week, changing hands at 59p, slightly below the peak of 59.40p the stock closed at on 9 February.
The mining royalty company told investors on Wednesday that it had received a favourable ruling from the District Court of Nevada, which confirmed the permitting process relating to Lithium Americas Corp (TSX:LAC, NYSE:LAC) Thacker Pass lithium project was conducted “thoroughly and responsibly.”
CleanTech Lithium, which peaked at 77p on Friday, was also in well bid. The Chilean focused exploration company has surged 95% in the year to date.
Such gains are representative of the demand for lithium, which is at the forefront of the electrical vehicle revolution, and tight supply which was hampered by Covid restrictions in China as prices peaked in November at just shy of US$85 per kilo.
Another one of AIM’s movers was Genedrive with shares up 26% to 31.4p after the molecular diagnostics company received a National Institute for Health and Care Excellence recommendation for its MT-RNR1 ID Kit.
The kit can quickly and accurately identify babies with a primary genetic variant who may be at risk of hearing loss if given a certain type of antibiotic.
Sticking with the medical world, and Oxford Biodynamics’ soared 21% to 19.15p following a promising update on its Prostate Screening EpiSwitch blood test.
Cancers, a peer-reviewed journal, reported a 94% accuracy rate in a piece which highlighted the results of a multi-institutional clinical study.
TekCapital moved 3% higher to 20p after its investee company struck a distribution deal in the US. MicroSalt, which is soon to be spun out from Tek, inked an agreement with US Salt which will allow the distribution and delivery of its low-sodium solutions.
Onto the fallers, and EFK Diagnostics slumped 12% to 29p following a trading update which included a major board reshuffle.
Net cash as of 3 December was 42% lower year-on-year at £11.4mln, with chief executive Mike Salter stepping down with immediate effect.
Software group ITIM Group PLC sank 23% to 35.9p in response to the company’s latest trading update. It stated that it will be “pivoting away” from the strategy proposed in the group’s 2021 IPO prospectus to improve margins and cash generation, though additional details regarding this were not given.
Sanderson Design Group ripped lower, shedding 6% to 125p, after the textile creator reported a decline in brand product and third-party manufacturing revenue following its exit from Russia.
And finally, a proposed placing on AIM.
Panther Metals said that Fulcrum Metals announced a successful pricing and conditional placing.
17,142,857 shares were sold at 17.5p per share, raising gross proceeds of approximately of roughly £3mln.
Fulcrum’s shares are expected to be admitted on to AIM market on 14 February.
Net proceeds of the placing will be used to “capitalise on the potential” of Fulcrum’s portfolio of projects in Canada, according to a statement.