The Cambridge Index advanced 172.5 points or 0.7% to close at 24,765, as seven of th top ten Index heavyweights posted weekly gains to their share prices.
Cambridge Index adds 0.7%
Peel Hunt reconfirmed its “Buy” rating on DS Smith, up 4.9%. UBS restated its “Neutral” rating on the stock.
Peel Hunt reissued its “Buy” rating on Frontier Developments, up 11.4%. They also reiterated their “Buy” rating on Kier Group, up 4.4%.
Science Group, down 1.1%, announced that it has acquired an additional 8.1m shares of Frontier Smart Technologies Group Limited (Frontier) at a price of 25p per share, following which its shareholding in Frontier stands at 70.3% of the voting capital. Science Group has proposed for a merger under the Cayman Islands law enabling it to acquire the remaining share in Frontier. The merger will require approval from 75% of Frontier’s shareholders, after which Frontier will cease to exist, shareholders will have no interest in the new company but will be given to 25p in cash.
Sareum Holdings, down 4.2%, in its operational update, announced that its two advancing distinct molecules from TYK2/JAK1 programmes that were selected as potential therapies for autoimmune diseases (SDC-1801) and cancers (SDC-1802) have garnered interest from international pharmaceutical firms. Meanwhile, its two ongoing SRA737 Phase 1/2 studies are expected to be completed in the first half of 2020. Sareum confirmed that it is eligible to receive up to $88m in future milestones and sales royalties, under its licensing agreement with CRT Pioneer Fund. Separately, the company revealed that it expects its net loss for the year ended 30 June 2019 to marginally drop to £1.45m from £1.47m in the prior year.
Cambridge Cognition Holdings, down 52.8%, in its trading update for the six months to 30 June 2019, announced that it expects its revenues to drop 21% to £2.2m from £2.8m in the prior year, with its interim loss widening to £1.7m from £1m, citing challenging trading conditions. Further, the company projects FY2019 revenue to fall to approximately £5.5m from £6.1m in FY2018 and expects loss to almost double to £2.8m, due to reduction in revenue and rise in R&D division spending.
UK markets closed mostly higher last week, supported by gains in commodity and banking sector stocks. The UK’s mortgage approvals unexpectedly rose to a 2-year high in July, whereas the net consumer credit advanced less than expected in the same month. Meanwhile, the consumer confidence index fell to its lowest level in six years in August. The FTSE 100 index advanced 1.6% to settle at 7207.2, while the FTSE AIM 100 index rose 0.1% to close at 4411.7. Meanwhile, the FTSE techMARK 100 index lost 1.5% to end at 5261.9.
US markets ended in the green in the previous week, boosted by gains in technology and industrial sector stocks, as investors remained optimistic of a possible US-China trade deal. The US economy grew as estimated in 2Q 2019, while the advance goods trade deficit narrowed in July. Further, the US durable goods orders climbed more than anticipated in July. On the contrary, the US pending home sales recorded its biggest drop since early 2018 in July, while the Michigan consumer sentiment index slid to its lowest level since October 2016 in August. The DJIA index rose 1.9% to end at 26403.3, while the NASDAQ index gained 1.4% to close at 7962.9.
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