2019 was a tumultuous year for the equity markets across the world. However, political turmoil and a no-deal Brexit fog which had oscillated throughout 2019, had brought steep volatility in the UK stock market. From large caps to mid-caps and even to small caps, all recorded sharp volatility in the year just passed.
The general election took place in the UK on December 12th, 2019, and the outcome of that election put a halt to the political unrest in the country and also took off the no-deal Brexit fear from the table. The General election handed a stonking majority to the PM Johnson-led conservative party, which was broadly expected by the investors and political experts.
Primarily, mid-caps and small caps, which are more exposed to domestic economic condition took a sighed relief after three and a half years of underperformance and started moving upward.
Since the results of the UK general election, the mid-cap benchmark index, the FTSE 250 of the UK surged approximately 5.03% to February 17th, 2020. Also, a positive movement was witnessed in the AIM segment of the London Stock Exchange, as the FTSE AIM 100, the benchmark AIM index of the UK has so far delivered a price return of 7.4% and the FTSE AIM All-Share index has delivered a price return of 7.5% respectively.
Since the Brexit referendum took place in June 2016, the mid-caps and small-caps of the UK were the hardest hit on account of falling British currency (GBP) against the basket of majors, which had substantially increased business costs of these companies and also there were a lot of uncertainty on whether Britain is going to crash out of the EU bloc with or without a deal.
Despite all these, there were several FTSE AIM stocks which have significantly outperformed their benchmark indices since the outcome of UK General election. Here in this piece of analysis, we are sharing a list of 5 FTSE AIM stocks, which have bagged approximately 50% during the period under consideration.
ITM POWER PLC: Alternative Investment Market-listed AIM: ITM is the United Kingdom-headquartered Alternative Energy business with an outstanding market capitalisation of Â£749.18m. The groupâs operational interests lie in designing and manufacturing of integrated hydrogen solutions for energy storage and clean fuel production. Since UK general election results were out, its shares, have turned investors fortune in just a two and a half month, as it surged approximately 148% (December 12th, 2019 to February 17th, 2020). The relative outperformance between ITM stocks and its benchmark FTSE AIM 100 index stood at 140.6%.
CERES POWER HOLDINGS PLC: United Kingdom-based AIM: CWR is a fuel cell and engineering company with an outstanding market-capitalisation of Â£785.35m. Its operational interests lie in the development and commercialisation of its fuel cell technology. During the period under consideration, its shares have delivered a massive price return of ~ 128% and relatively outperformed its benchmark index FTSE AIM 100 by 120.6%.
TEAM17 GROUP PLC: AIM: TM17 group is a Â£717.46m market-cap leisure goods company, with operational interests lying in the development of video games. Its shares have delivered a solid return of 67% during the period under consideration. The relative outperformance of the stock against its benchmark index FTSE AIM 100 stood at 59.60%.
BLUE PRISM GROUP PLC: Alternative Investment Market-listed AIM: PRSM is the United Kingdom-headquartered Software and Computer Services company with an outstanding market-capitalisation of Â£1.31bn. The group is engaged in robotic process automation and enabling blue-chip firms to create a digital workforce powered by the Blue Prismâs software robots that are trained to automate routine back-office clerical tasks. In the period under review, its shares have delivered a solid return of 62% and relatively outperformed its benchmark index by 54.60%.
KNIGHTS GROUP HOLDINGS PLC: Alternative Investment Market-listed AIM: KGH is a United Kingdom-headquartered support services provider with a market-capitalisation of Â£356.24 mn. The group is engaged in providing legal and professional services and provides corporate and commercial legal services at scale and across a broad sector basis, similar to the larger national law firms. The company has delivered a price return of 48% during the period under consideration. Also, the relative outperformance between the companyâs stock and its benchmark index FTSE 100 stood at 40.6%.
Apart from these five best performing FTSE AIM stocks, there are several other counters in the AIM segment of the London Stock Exchange, which delivered double-digit price returns between December 12th, 2019 to February 17th, 2020, which includes, Breedon Group PLC (up 44%), Learning Technologies Group PLC (up 33%), IMImobile PLC (up 37%), Caretech Holdings PLC (up 27%), Renew Holdings PLC (up 21%), Dart Group PLC (up 29%), Hutchison China MediTech Ltd (up 22%), Codemasters Group Holdings PLC (up 25%), Gateley Holdings PLC (up 23%), Keywords Studios PLC (up 21%), Boohoo Group PLC (up 23%), Sumo Group PLC (up 20%), IQE PLC (up 24%), and dotDigital Group PLC (up 21%), respectively.