March Market Overview – Updated
We are pleased to supply the Monthly Market Overview for March. You will find, as well as a brief comment on the market, 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. Due to a revision of the LSE figures this was updated later in April.
Market Comment
The FTSE 100 ended March up 2.5% from the previous month’s close and both the FTSE All Share and the AIM All Share indices followed suit and ended higher than a month ago. The FTSE 100 fell to an intra-day low of under 3,500, but since then has rallied on hopes that the latest quantitative easing measures by the authorities here and in the US will be successful. The FTSE 100 Share Index has been very volatile over the last 6 months since hitting a low of 3,665.20 at the end of October rising to 4,638.92 in January before its most recent fall.
The FTSE AIM All Share Index has not proved to be as volatile lately. Since last November when the index fell to below 400, it has traded in a relatively narrow band between a low of 373.47 and a high of 416.98. The trading range of just 43.51 points represents 11.7% of the lower value of the Index. Compare this to the trading range of the FTSE 100 Share Index, where the trading range was between a closing low of 3,512.09 on 3 March to a high of 4,638.92 referred to above. This represents a trading range of 1126.83 points or 32.1% of the lower value of the Index.
We believe that this consolidation in the AIM All Share Index is actually very significant and probably indicates the bottom of the AIM market has been reached. For much of last year share prices on AIM generally reacted badly to any corporate news, no matter how good but recently good news has resulted in an increase in share price. It is unlikely that the AIM market will see any significant rally until confidence returns to the main market and this still remains fragile to say the least. However, the FTSE AIM All Share Index has participated well in the latest rally in the market, so that it now stands at its highest level for five months.
For those investors who are brave enough to take a risk in investing in AIM stocks at this time, there are a number of opportunities that seem very interesting. Redhall Group, Northbridge Industrial Services and Healthcare Locums are all examples of companies that are currently followed closely and the companies are optimistic they will perform well regardless of what happens to the FTSE AIM All Share Index in the near future.
Download attatchment below for the full Market Overview: