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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Footsie fades but small caps hold strong

After the bell, J. Sainsbury confirmed it would be pulling the trigger on its bid for Argos-owner Home Retail group.

Unlike the FTSE 100, the two main AIM indices managed to hold on to early gains on Friday.

The FTSE 100 closed at 6,190, down 11 points, as resource stocks turned south in the afternoon.

The junior market's counterpart to the Footsie, the AIM 100, rose 15 points to finish at 3,318, up 40 points, or 1.23% on the week.

The index's best performers on the week were: GW Pharmaceuticals PLC (LON:GWP), up 93%; Fusionex International PLC (LON:FXI), up 20%; and Fevertree Drinks PLC (LON:FEVR), up 16%.

The broader-based AIM All-share closed the week at 707, up two points on the day and five points (0.7%) on the week.

One of the best performers on the week, Pathfinder Minerals PLC (LON:PFP) encountered profit taking today, losing one-fifth of its value, though it was still up 156% on the week after a £200,000 cash injection announced this week.

Looking at the performance of the small caps today, Highland Natural Resources PLC (LON:HNR) was a stand-out, rising 19.6% to 16.75p, as it entered into a cooperation agreement with Ticaboo Minerals, Inc.

Highlands has received an assignment covering 100% of 26 unpatented mining claims in Grand County, Utah covering some 537 acres following Highlands' evaluation of oil and gas well logs in Utah, which have uncovered a potential uranium discovery that can be mined via an in-situ solution mining process.

The consideration of US$32,000 has been satisfied through a cash payment.

Cooperation was the name of the game for Lombard Risk Management plc (LON:LRM), as well, as the banking regulations software provider licensed its software to database software giant Oracle.

Oracle is now licensed to sell Lombard's AgileREPORTER and regulatory reporting templates to integrate with Oracle's Financial Services Data Foundation.

Lombard's shares rose 9% on the news.

Shortly after the market closed supermarket chain J. Sainsbury PLC (LON:SBRY) confirmed it would be bidding for Home Retail Group PLC (LON:HOME), offering 0.321 shares plus 55p in cash for each Home Retail share.

With Home Retail's shareholders entitled to keep the already announced 27.8p special dividend, the terms value Home Retail shares at 173.2p a pop, and the company as a whole at around £1.4bn.

Mid-session

Chile focused explorer Herencia Resources (LON: HER) was bolstering junior shares on Friday afternoon, as it announced receipt of a $50,000 loan from Oriental Darius Co. Ltd to bolster working capital.

The firm said it would allow the Next Minerals due diligence ("DD") on the company's Picachos project to be completed.

Shares added 12.5% to 0.02p as FTSE AIM 100 gained 0.55% to 3,321 and FTSE AIM All share gained 0.35% to 707.700. FTSE100 was also ahead at mid-session.

Elsewhere, plans unveiled by Genel Energy PLC (LON:GENL) to buy back at least $50mln of its bonds were greeted warmly by the market. Shares in Genel gained 13.25% to 89.75p.

The Kurdistan-focused exploration and production company also revealed that total proved (i.e. 1P) oil reserves at the 25%-owned Tawke field had increased by 21% to 387mln barrels, due to improved confidence over primary recovery rates across the field.

The timing of the move to reduce its indebtedness via a partial buy-back of bonds may have something to do with concerns over the balance sheet strength of Gulf Keystone Petroleum Limited (LON:GKP), another oil company operating in the Kurdistan region, which were raised earlier this week when it released results.

Photonstar LED Group PLC (LON:PSL), the designer and manufacturer of smart LED lighting solutions, was a bright spot, climbing 9.52% to 2.875p , after its application for a patent on wireless nodes with security keys was granted by the UK Intellectual Property Office.

The out-of-band secure commissioning patent is targeted at Internet of Things (IoT) lighting, sensors, actuators and other devices employed particularly in commercial applications where security vulnerabilities at the commissioning stage must be safeguarded.

Rare Earth Minerals plc (LON:REM, OTC:REMMY) shares were higher earlier but retreated to be down 1.90% to 0.515p as the company said it is set to add Australia to its growing portfolio of lithium deposits.

REM, which already has stakes in sizeable lithium prospects in Mexico and the Czech Republic, will pay C$300,000 through a share subscription for a 15.5% stake in Toronto-listed MacArthur Minerals.

The spat between the board of low-cost airline Fastjet PLC (LON:FJET) and 12.6% shareholder easyGroup rumbles on, with the former not happy with easyGroup's decision to publish a letter it had sent to the Fastjet group without first raising its concerns with the company.

Fastjet holds easyGroup responsible for any damage caused to the business by the publication of this letter and is taking legal advice on the matter.

Fastjet shares eased 11.72% to stand at 32p a pop on the day.

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