SMALL-CAP WINNERS & LOSERS: China-focused investors track Asia rebound

Wed, 16th Mar 2022 11:10

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

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SMALL-CAP - WINNERS

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JPMorgan China Growth & Income PLC, up 13% at 350.55 pence, 12-month range 295.50p-730p. The greater China-focused investor tracks rebound in Shanghai and Hong Kong equity markets overnight. The SSE Composite Index rallies 3.5% and the Hang Seng index jumps 9.1%. Baillie Gifford China Growth Trust rises 9.2%. The rebound follows a report by the official Xinhua news agency saying China will keep the stock market stable and support overseas share listings. The report, which cited a meeting chaired by Vice Premier Liu He, came after a series of pieces in state media looking to boost sentiment.

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On The Beach Group PLC, up 6.9% at 256.5p, 12-month range 198p-517p. Jefferies upgrades the beach holidays retailer to 'hold' from 'underperform'.

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SMALL-CAP - LOSERS

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Gym Group PLC, down 6.5% at 192.6p, 12-month range 177.4p-317.5p. Revenue for 2021 rises 32% to GBP106.0 million and pretax loss slims to GBP44.2 million from GBP47.2 million. Says it is seeing inflation in operating cost base which is expected to be 4% to 6% overall, driven notably by an increase in utility costs in the second half, and says these increases will not be fully offset in 2022. However, expects they will be offset in 2023 as full benefit of price rises starts to come through. "We are confident that our high margin, low-cost business model and our yield optimisation strategy will help to mitigate the impacts of the current inflationary environment," says Chief Executive Richard Darwin.

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Pharos Energy PLC, down 6.1% at 26.39p, 12-month range 18.58p-32.93p. Revenue for 2021 falls to USD134.1 million from USD142.0 million in 2020, though the oil and gas exploration and production company swings to pretax profit of USD38.6 million from loss of USD241.1 million. "The key focus for 2022 is cash generation, through careful cost control, a rapid payback programme of drilling in Vietnam and in Egypt through our carry, which covers all but our own moderate corporate costs," says Chief Executive Jann Brown.

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By Lucy Heming; lucyheming@alliancenews.com