Capital Metals cheered on the misfortunes of Sri Lanka’s sacked environment minister Naseer Ahamed, who had his party expulsion upheld by the Sri Lankan Supreme Court this week.
Ahamed’s sacking had something to do with a 2021 budget vote, which was of no consequence for Capital.
All that mattered for executive chairman Greg Martyr was the departure of a “major impediment” to the mine developer’s progress in Sri Lanka.
“This, together with the recently approved change in mineral licensing procedures, which transfers certain responsibilities to the Board of Investment, should bode well for our situation but also more generally for the country as it takes steps to improve governance,” said Martyr.
Shareholders pounced on this political development, sending Capital Metals to the very top of the AIM movers list this week.
It was the culmination of a butterfly effect that started with a Sri Lankan minister controversially voting for a budget in 2021 and resulting in a 140% share price surge for a London-listed mining group two years later.
AIM All-Share reacts to inflation data
The AIM All-Share index saw a mid-week boost after a sluggish Monday, with investors buoyed by renewed hopes of a peak in interest rates following some pleasing food inflation data.
Figures from market research firm Kantar showed grocery price inflation cooled to 11% for the four weeks to 1 October 2023, the lowest rate since July 2022.
Unfortunately the US ruined the party on Thursday, with higher-than-expected wholesale price inflation data causing a bit of an equities cool off.
AIM ultimately finished the week around 0.2% lower, underperforming against a bullish FTSE 100 blue-chip index that finished the week more than 1.5% in the green.
Don’t baulk at nicotine-free vaping
There’s a lot to be said about vaping lately. Last week major distributor Supreme plc was in the out tray following Prime Minister Rishi Sunak’s hawkish comments on the electronic smoke alternatives.
On the flip side, Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) has a solid showing on the AIM market this week, jumping more than 13%.
The rally followed news that the group’s Chill ZERO nicotine-free vapour products will be available for sale to adult customers on Amazon’s UK site this month.
Don’t scoff as nicotine-free vapes, when every pub seems to have an alcohol-free beer for sale these days.
More winners and losers
Brandshield Systems plc is also at the top of the mover's table. A few weeks back we had the news that former Tesco boss Sir Terence Leavy was taking part in a share subscription with the cybersecurity small cap preceding its upcoming delisting from the London Stock Exchange.
It’s been a bit of a rollercoaster since then, with shares initially tanking on the delisting announcement before rebounding as much as 30% this week. The 5.68p open offer was apparently not too bad a deal after all, having raised around £52,000.
Christie Group PLC (AIM:CTG) tumbled to near three-year lows as the distressed business services specialist issued a mixed trading update that contained a warning about profits.
Shares fell 19% on Friday to 81p, down to levels last seen in November 2020.
Shares in company Windward Ltd (AIM:WNWD) rose 17% to 73p on Thursday after posting a trading update informing the market of a slew of new contracts.
The company, which designs AI solutions for the maritime industry, said in a statement today that it is now trading “comfortably” in line with market expectations.
Elsewhere in the heavy industries, Red Rock Resources PLC (AIM:RRR) was up more than 50% and Hummingbird Resources PLC (LSE:HUM) around 33%.
On the downside were Zanaga Iron and Ore Co Ltd, which fell some 30% and Synergia Energy Ltd (AIM:SYN), which shed around 22%.
But the week’s worst performer looks to be Eneraqua Technologies PLC (AIM:ETP), which plummeted 60%. The energy-efficiency company took a nosedive following a profit warning after the Sunak cabinet delayed its ban of gas-powered boilers this autumn, in a move that came as a blow to the heat pump industry in which Eneraqua operates.
Bull or bear for esports stocks?
Finally, a look at the listed eports stock would seem to suggest a fad that’s run its course.
However, the latest data show that in the UK the sector is alive, kicking and growing at a decent clip. Revenues are forecast to be $202 million this year, up more than 30% from 2020 levels.
So, does this put the David Beckham-backed Guild Esports and Gfinity in bargain territory? Possibly.
Certainly, the current valuations don’t seem to reflect the outlook for the industry, which is expected to be worth a quarter of a billion dollars by 2025 domestically and around $1.9bn globally, according to Statista.