RE: Mail on line12 May 2025 20:42
London's AIM market might finally be getting its moment back.
After years in the doldrums, boutique broker Turner Pope reckons the UK's junior stock index is 'quite dramatically oversold', and could be set for a rebound in the second half of 2025.
Right now, AIM is trading almost 40 per cent below its 10-year average and 60 per cent behind the FTSE All-Share.
That huge discount, Turner Pope argues, is getting harder to ignore. And with economic conditions shifting, investors may start paying attention again.
Why the optimism? For one, the index has shed a lot of weaker names. It now hosts just 586 companies, down from nearly 1,700 at its peak.
What's left is a tighter group of better-managed businesses, often with global IP and solid growth prospects. Think clean tech, life sciences and digital infrastructure, all sectors with long-term tailwinds.
Add in the prospect of rate cuts, possible pension reform to boost small-cap flows, and a flurry of M&A talk, and AIM starts to look like a comeback story.
In fact, the comeback may already be under way. The AIM All-Share ended the week 3 per cent higher and is up 15 per cent over the past month, outperforming the FTSE 100 on both counts.