Cannabis drug trial success sent GW Pharmaceuticals (LON:GWP, NASDAQ:GWPH) shares soaring on Monday.
GW’s Phase 3 study found that the cannabis based drug candidate significantly reduced the frequency of seizures in children suffering from a severe form of epilepsy called Dravet Syndrome.
The drug, called Epidiolex, contains a liquid formulation of pure plant-derived CBD, or cannabidiol. It now plans to file for approval of the drug with the US Food and Drug Administration (FDA), which has already granted priority designations to accelerate the process.
If all goes to plan, it would be the first drug of its kind to be approved by the FDA, opening the door to other cannabis-based medicines.
GW shares rose by 302.5p, 139.7%, to close Monday’s trading at 519p.
Metal Tiger (LON:MTR) advanced 67% as it confirmed it would acquire a 28.25% stake in soon to be relaunched ZimNRG (ISDX:ZIMO) (to be renamed MetalNRG) which has also agreed a new investment policy. It invested £50,003 to get the stake in the company.
Standing at 3,364 the FTSE AIM 100 closed sharply higher, up 86 points or 2.65%.
The AIM All Share, meanwhile, climbed 1.5% to reach 713 by the end of the day.
In the big market, the FTSE 100 finished the day up 34 points or 0.57% to 6,174.
LGO Energy PLC gains as Trinidad oilers make new plans, AIM up on Monday - 10:47am
LGO Energy Plc (LON:LGO) was among Monday’s early risers in the AIM market, rising 11.8% to 0.33p, as it revealed some green shoots of recovery in its Trinidad oil business.
Stronger oil prices in this past month - crude is now changing hands near $40 rather than $30 - have prompted a new programme to rework old wells at LGO’s Goudron field.
The timely development, which will be completed in a matter of weeks, is expected to add about 100 barrels per day to the fields output, giving additional cash-flow at a time when the company is evaluating ‘strategic financing opportunities’.
While one Trinidad oil junior was boosted in early deals, another has fallen dramatically.
Trinity Exploration & Production (LON:TRIN) dropped over 40%, to 1.5p, on Monday morning after telling investors that a previously agreed $20mln sale of its onshore production business would no longer proceed.
The company said the deal, which had a ‘backstop’ date of March 13, still had one condition outstanding and it has sent a termination notice to the proposed buyer Touchstone.
Whilst Trinity currently owes 13mln to its lenders, and it has secured an extension to an ongoing moratorium over its debt repayment until March 25, the company also highlighted that following cost cutting measures its asset portfolio is attractive even at current oil prices.
Trinity is now working with Imperial Capital in New York and Cantor Fitzgerald in London, with a view to a refinancing.
Incidentally, Range Resources (LON:RRL) - AIM’s other Trinidad based oiler - was down 9% to 0.32p. The company announced this morning that it had begun drilling its latest well, MD 250, which will be the first one drilled by a new rig.
Metal Tiger (LON:MTR) and GCM Resources (LON:GCM) rose 26% and 25% respectively.
Up Sphere Medical (LON:SPHR), the company that has developed arterial blood analysers, was up 19.5% at 14p and was the morning’s top stock in the bio and medical technology sector.
London’s small cap stocks follow blue-chips higher - 9:53am
The FTSE AIM 100 rose 10.68 points, 0.33%, to 3,288.17 while the FTSE AIM All Share edged up 0.19% to 703.78.
The FTSE 100 blue-chip benchmark rose 32 points, 0.5%, to 6,171 in Monday’s early deals.
Mining firms were among the leaders with Glencore (LON:GLEN) rising 4.48% to 148p, followed by Anglo American (LON:AAL), BHP Billiton (LON:BHP) and Antofagasta (LON:ANTO) - up 3.6%, 2.13% and 1.8% respectively.
The apparent strength comes amid heightened hopes for demand growth from China.
“Confirmation that China is set to return to its policy of infrastructure spending and equity market support has been as good an excuse as any to see the bulls hold the early morning upper hand,” said Alastair McCaig, analyst at IG Markets.
“Unsurprisingly, as the Asian beast looks to be awakening from its slumber, the mining sector has been the major beneficiary in the FTSE.”
Elsewhere, insurers Admiral (LON:ADM) and Aviva (LON:AV.) were the biggest fallers, down 2.19% and 1.35% to 1,873p and 488p respectively.
British Gas owner Centrica (LON:CNA), meanwhile, dropped 1.13%.
Tepid start to the week for the FTSE 100 - 6:41am
The FTSE 100 is set to open its account only marginally higher despite a strong showing from the Asian equity markets overnight.
The index of blue chip shares is set to rise just five points on open to 6,143.79 after a strong close last week.
A delayed reaction to the European Central Bank’s stimulus programme drove the Shanghai Composite 1.8% higher and was behind a 1.2% rise in Hong Kong’s Hang Seng index.
It certainly wasn’t the economic data from Beijing over the weekend, which painted a fairly gloomy picture. Production growth slowed to 5.4% in February – the worst since 2008.
Stocks wise, China’s property share were in demand, buoyed by takeover speculation.
In Japan, the Nikkei 225 was in ‘tag along mode’ as it added 1.7%.
Looking ahead, sentiment this week will be shaped by monthly updates from the US Federal Reserve, Bank of Japan and Bank of England.
The added spice here in the UK is provided by Chancellor George Osborne, who on Wednesday delivers his eighth Budget speech.
Already foreshadowed on Sunday are plans to cut spending by a further £4bn a year amid uncertainty over the growth trajectory of the UK and world economies.
It looks like a fairly quiet week for scheduled corporate announcements with companies possessing good news keeping their powder dry.
British American Tobacco and the hotelier Millennium & Copthorne are the biggest firms reporting.