SMALL CAPACITY MOVEMENTS: AJ Bell’s snub to Aquis provokes chief executive’s fury

To what extent should retail investment platforms be required to support the smaller set of listed UK small-cap companies?

That seemed to be the topic of conversation this week when AJ Bell decided to limit app-based trading from companies listed in Aquis’ initial access segment.

Retail investors can still engage in the archaic practice of picking up the phone to place an order, but the decision still caused a minor outcry.

Melissa Surgess, CEO of Aquis-listed Ananda Developments, took to LinkedIn and called it “a shame to not allow app-based purchases of Aquis Exchange shares.”

To be fair, Ananda is listed in the premium segment of Apex, so it was not affected, but its point of view garnered sympathy from the broader small-cap scene.

AJ Bell, for his part, did not budge on his decision due to the inherent volatility and risk associated with the younger subset of the small-cap market.

While a spokesperson acknowledged the frustrations of these companies, he added that their duty of care lies with their clients, not the companies whose shares are traded on the platform.

Anyway, that’s one way to answer the question above.

There was minimal action this week in the AIM All-Share Index, which fell about 0.3 per cent to enter Friday at 743.44.

That meant the junior index underperformed the blue chips, given the FTSE 100’s rise in percentage points.

The main index benefited from optimism among blue-chip mining companies thanks to record gold prices and news of a $113 billion stimulus package from China.

Cora Gold shared some of the record love for the gold price, with West Africa-focused small-cap exploration soaring more than 60 percent this week.

Cora’s latest exploration update, detailing approximately 50 kilometers of “highly prospective terrain for exploration targets,” surely helped.

Unfortunately the same cannot be said for Hummingbird Resourceswhich fell 25 percent after the Guinea-based gold miner revealed management changes, a strategic review and a new short-term financing package.

A chief transformation officer will be appointed to oversee the review, while chief executive Dan Betts will become executive chairman and take on a strategic rather than operational role.

Some assets are also likely to be sold, including the Dugbe gold project in Liberia, the group said.

Distill fell 45 per cent as it revealed a deeply discounted placement to provide the spirits group with £650,000 of working capital funding. The shares were issued at 0.12 pence, representing a 40 per cent discount.

Speaking of discount fundraising, Enteq Technologies plc fell 42 per cent following a deeply discounted sale of shares worth £1.5m.

Funds raised will support the launch of Enteq’s SABER tool, a rotary directional system for directional drilling, targeting a $2 billion annual market.

Direct Plus It was another big flop this week. Shares plunged more than 20 percent after the graphene specialist issued a profit warning alongside first-half results.

Founder and CEO Giulio Cesareo said full-year revenue is expected to be “materially below” market expectations.

Deltic Energywhich became the latest British oil company to warn about the impact of the political and fiscal approach the UK government is taking to the North Sea and offshore oil and gas, fell 43 per cent.

Back to the bands, Electric guitar rose 33 percent after announcing a new loyalty app in the banking and finance sector.

The app is jointly developed by Electric Guitar subsidiary 3radical, its partner Marcomms.ai, and fintech company Little Birdie. It integrates Open Banking data, improving consumer engagement and providing personalized financial information.

In the biotechnology space, Shield Therapeutics surged by a third following the announcement of successful Phase III trial results of its iron deficiency treatment, Accrufer, which could pave the way for its use in children.

Actions in Biomedical Ondine rallied 22 per cent after saying it had raised around £2.8 million from a new private investor in Canada to support commercial growth of its antimicrobial treatments.