Scottish AIM shares rise more than 10 per cent in second quarter

The rise was the largest among comparable markets with the FTSE AIM UK 50 rising 9.06 per cent; the FTSE AIM all share index up 5.51 per cent; the FTSE AIM 100 rising 4.82 per cent the FTSE 250 up 2.57 per cent and the FTSE All share falling 2.53 per cent.

There were 26 Scottish AIM listed companies in the second quarter of 2015 with a combined market cap of £1665.99m compared with £1510.22m in Q1 2015.

The biggest increase in share price was experienced by Eland Oil and Gas which rose 68.6 per cent followed by a 54.5 per cent rise for Omega Diagnostics and a 45.6 per cent increase for Lansdowne Oil and Gas.

The largest faller was Seaenergy which dropped 45.9 per cent followed by a 31.9 per cent fall for Indigovision and a 22.9 per cent fall for Braveheart Investment Group.

Smart Metering had the largest market cap at £306.29m equivalent to 18.4 per cent of the entire Scottish market with Braveheart the smallest with a market cap of £2.57m making up just 0.15 per cent.

Craig Martin, corporate finance director with BDO, said: “The second quarter saw a correction in the value of some of Scotland’s AIM listed oil and gas companies. Both Lansdowne and Eland had been the largest fallers in the first quarter and have now recovered as the largest risers in the second quarter. However, Seaenergy experienced a substantial dip in value of 45.9 per cent; Bowleven saw its value fall 9.75 per cent and Faroe rose just 5.2 per cent.

“The overall increase in values is welcome as the listed sector has been hit badly by a number of factors outwith its control. The issues relating to Greece, the fall in output in China, and concern over the wider economic recovery are all factors which have led to some reduction in the value of listed markets. Therefore, for Scotland’s AIM listed firms to increase substantially in value is commendable.”

Mr Martin added: “It is clear that the ramifications of the still subdued oil price continue to impact on all businesses related to the sector and this is likely to continue for the rest of the year. Most firms are hoping for the best but clearly preparing for the worst so I would expect there to be further profit warnings and cost cutting occurring as the sector adjusts to a new world order.

“Uncertainty over the election has now obviously faded and businesses are preparing for the next few years expecting the upturn in the economy to continue but wary of any fluctuations caused by the Eurozone or China or America underperforming expectations. This is the nature of business and I would expect Scotland’s listed companies to weather the economic storm. I believe that in this, the 20th year of AIM, we will see more firms listing on this market in the coming years.”