Cambridge Index eases 1.0%

130120_The Cambridge & FTSE AIM 100 Index Movement

The Cambridge Index declined 285.9 points or 1% to close at 27,652.2, as four of the top five Index heavyweights posted weekly losses to their share prices.

Bank of America Merrill Lynch restated its “Buy” rating on AVEVA Group, up 1.1%, with a target price of 5400p. Barclays reissued its “Overweight” rating on the stock with a target price of 4700p.

Abcam, down 2.2%, in its trading update for the six months ended 31 December 2019, announced that its total revenue is expected to advance by 10.8% to £138.2m as well as 8.3% on a constant currency basis. Further, the company has lowered its target for annual constant currency revenue growth to 9%-10% depending on its expected revenue phasing for the year. Also, the company anticipates its recently acquired businesses from Expedeon AG to generate around £4m of incremental revenue in the FY2020.

CyanConnode Holdings, up 7.6%, announced that it has obtained an official purchase order from partner Genus Power Infrastructures Limited worth £3.3m for the delivery of hardware, services, and head-end software with an annual maintenance contract that would enable a hybrid RF smart mesh and cellular communication platform accessible to 200k smart meters. The project is expected to be completed in a period of 15 month and generating around 80% of revenue within two years.

1Spatial, up 1.8%, in its business update, announced that all its units have recorded significant progress following securing major strategic partnerships. Moreover, it has been selected in a three-year open tender by The Bureau of Meteorology in Australia for the provision of software and services for a minimum consideration of A$1m.

Xaar, unchanged at 52.4p, announced that Ian Tichias will be appointed as the Chief Finance Officer and Director of the Board, with effect from 01 March 2020.

Peel Hunt reaffirmed its “Buy” rating on Kier Group, down 10%.

UK markets ended in the red last week, weighed down by losses in banking and healthcare sector stocks. The UK’s services PMI unexpectedly rose in December, while the nation’s Halifax house price index advanced to its highest level since February 2007 in the same month. The FTSE 100 index declined 0.5% to settle at 7587.9, while the FTSE AIM 100 index fell 0.9% to close at 4917.3. Meanwhile, the FTSE techMARK 100 index lost 0.9% to end at 5954.2.

US markets ended higher in the previous week, amid fading worries over the US-Iran conflict. US non-farm payrolls advanced less than expected in December, while the nation’s services PMI rose in the same month. Further, the US private sector employment climbed to an 8-month high level in December, while the non-manufacturing PMI increased more than estimated in the same month. Also, the US trade deficit narrowed in November. The DJIA index rose 0.7% to end at 28823.8, while the NASDAQ index gained 1.8% to close at 9178.9.

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