UK equity markets fell sharply last autumn, and while the main indices have clawed their way back, the Alternative Investment Market (AIM) has noticeably struggled to recover. After more than a year, the growth-focused smaller-cap index is still down around 20 percent on where it was before the slump. You could argue that a loss of enthusiasm for smaller, more speculative stocks is no surprise in the current climate. Periods of economic unease – currently not helped by Brexit uncertainty – tend to spook growth company investors. So AIM often feels the pain first when sentiment starts to cool. Another clue to this protracted slump is that the AIM 100 index of the largest companies on the market has also failed to recover since the pullback last year. As it turns out, some of AIM’s biggest names have come under serious pressure for various reasons over the past 18 months. (Chris Boxall at Fundamental Asset Management expands on this subject here). Among them has been Burford Capital, the litigation funding specialist and one of AIM’s largest stocks. Its valuation fell from £3.5bn to £1.5bn in just a few weeks…
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
