Market Update: AIM Shares

THE WEEK: The AIM market has suffered losses of late, but there are still positive growth opportunities for investors in domestic stocks, says Rodney Hobson

Rodney Hobson 30 May, 2014 | 10:21AM

While I remain confident that the London stock market will move higher, it is always sensible to keep both feet on the ground. Like many commentators, I did not expect the market to fall so heavily and for so long at the turn of the millennium and I resolved not to let wishful thinking blind me again.

It was one of the delegates at the London Investor Show last Friday who brought my attention to present day reality. He pointed out that there had been heavy falls on the AIM market and did I know why. Quite frankly I had not realised that the falls had been quite so severe and the fact that I do not have any AIM stocks in my portfolio and rarely write about the junior market is no excuse for ignorance, so I took a look.

The UK AIM 50, covering the 50 largest UK-based AIM listed stocks, shot up from around 3,600 points a year ago to reach 4,900 points in March. This month it has been as low as 4,100. The AIM 100, covering the 100 largest AIM shares irrespective of country of origin, shows a similar pattern, rising from 3,200 points to 4,100 before falling to 3,500.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Card Factory PLC31.00 GBX-3.73
Pets at Home Group PLC237.60 GBX-1.00
Royal Mail PLC126.80 GBX-1.25
Saga PLC16.08 GBX-8.84

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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