JANUARY MARKET OVERVIEW
We are pleased to supply the Monthly Market Overview for January You will find, The Top 25 Most Actively Traded Securities, figures for Turnover by Sector, Top 25 Aim Companies by Market Capitalisation, Distribution of Equity and finally Admissions and Cancellations.
Market Comment
The improving performance of AIM stocks has continued through January in contrast to the other indices shown above. Whilst both the FTSE 100 Share Index and the FTSE All Share Index fell in January, the FTSE AIM All Share Index actually reported an increase.
Despite the better performance from stocks on AIM though, the number of companies on the market continues to fall as can be seen from the statistics below. Only three companies joined the market during the period with 19 leaving for one reason for another. This is carrying on the trend seen last year, when a dearth of new issues combined with a large number of companies leaving AIM led to a sharp fall in the number of companies quoted on the market.
It is quite interesting looking at the list of the most actively traded securities that the four companies which are involved in oil exploration around the Falkland Islands are all on the list. The recent arrival of the oil rig the Ocean Guardian has increased tensions in the area with Argentina once again claiming that the Falklands (or Malvinas as they are otherwise known) should be returned to Argentina – this has prompted lots of media coverage recently, whilst investors have also clearly been joining in the fun, buying shares in Desire Petroleum, Rockhopper Exploration, Falkland Oil & Gas and Borders & Southern Petroleum. It is also noticeable that many other of the most actively traded securities are involved in the oil and gas industry.
It is pretty remarkable to think that under a year ago, in March last year, the FTSE AIM ALL Share Index closed at 373.76, as since then it has risen by an amazing 78.6%!! To expect a similar performance in the next year is not realistic given the economic backdrop, although the large number of oil, gas and mining companies on AIM will provide some protection against a weak UK economy. That is assuming that the oil price remains firm and demand for commodities remains buoyant.
The outlook for companies on AIM in 2010 remains mixed as always. Some companies are finding life very hard at the moment, whereas some, such as Straight and Stadium, have recently reported buoyant trading. Investors need to be prudent as always and, perhaps most importantly, ensure that they have done their homework in researching any company in which they invest through websites such as AIMListing.co.uk.
To Download The Full Market Overview, Click Here: