Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Positive news flow is among the catalysts behind the significant stock movements
Thursday 17 Sep 2020 Author: Mark Gardner

Forty two companies on the UK stock market have seen their share prices rise by at least 20% over the past week (to 15 September), principally as investors race to own shares issuing positive news, albeit some of the aforementioned stocks moved on no news at all.

One of the biggest gains came from specialist car brake maker Surface Transforms (SCE:AIM), whose shares rocketed 98% to an intraday high of 48.5p during trading on 14 September after it revealed a big contract win and raised expectations of annual growth in revenue.

Due to increased retrofit and original equipment manufacturer sales in spite of the coronavirus pandemic, the firm expects revenue for the year to be £2 million, which is £400,000 ahead of market expectations, and signed a contract worth £27.5 million over its lifetime with an unnamed vehicle manufacturer to supply carbon ceramic brake discs.

Security services provider G4S (GFS) jumped 28% to 180p after Canadian peer GardaWorld announced the terms of a £3 billion takeover approach for the business.

GardaWorld, the largest privately-owned security services firm in the world, has proposed an all-cash offer of 190p per share for G4S, which it said represents a premium of 86% to the target’s share price prior to its first approach in June.

Engineered electronics-maker TT Electronics (TTG) jumped 37% on 10 September after the firm announced the launch of a ‘ground-breaking’ Covid-19 screening device.

TT has been working with UK start-up iAbra and partners, including chipmaking giant Intel, on the design and manufacture of a device called Virolens. A first round of testing at Heathrow Airport was successful and iAbra is about to embark on clinical trials so that the device can be certified for medical use.

Having already been a nine-bagger since the start of 2020, gold mining explorer Greatland Gold (GGP:AIM) jumped a further 41% to 23.64p following two bits of positive news on 10 September. Driving the shares were more promising drilling results from its flagship Havieron deposit in Western Australia and Greatland being granted a mining lease for the project.

Going the other way was oil explorer Hurricane Energy (HUR:AIM), whose shares fell 54% to 2.93p on 11 September after it sharply marked down its flagship project’s recoverable reserves.

The company now expects to extract 16 million barrels of oil from its Lancaster field over a six-year period, well below the 37.1 million it expected to extract previously.

‹ Previous2020-09-17Next ›