New analysis reveals the Scottish listed companies bucking the summer stock market gloom
Scottish firms listed on the London Stock Exchange have outperformed their indices in the third quarter, buoyed by a strong performance from those quoted on the Alternative Investment Market (Aim), new analysis reveals.
Wealth manager Brewin Dolphin found that Scottish businesses on Aim registered an average share price gain of 18.72 per cent between July and September, while the index saw an 8.69 per cent increase in value.
Scots firms on Aim are now up 16.22 per cent on average for the first nine months of 2020, compared to a fractional gain for the wider junior market.
Meanwhile, Scottish shares on the FTSE averaged a share price loss of 1.4 per cent between July and September, compared to falls of 5.18 per cent and just over 4 per cent for the FTSE 100 and FTSE All Share indices. The FTSE 250 saw a slight gain of just under 1 per cent over the same period, while the FTSE 350 lost 4.16 per cent.
With a 29.65 per cent decrease in value for the year to 30 September, however, Scottish companies remain some way behind the four main FTSE indices, according to the new analysis.
There have been some hefty gains for Aim-quoted Scottish companies in 2020. Omega Diagnostics, the Alva-based life sciences company, has seen its share price surge 445 per cent in the year to the end of September, rising 88 per cent in the third quarter.
Braveheart Investment Group and Scotgold, the miner, have also chalked impressive gains, of 240 per cent and 123 per cent since January, respectively. A dozen of Scotland’s Aim constituents saw their share prices rise between July and September.
Only two Scottish constituents of the FTSE have seen their value increase in 2020 – Scottish Mortgage Investment Trust, the technology-focused fund, and sausage skin producer Devro – with gains of 71 per cent and 4 per cent, respectively.
However, another seven saw their share prices rebound in the third quarter, taking the total in positive territory to nine between July and September. Irn-Bru maker AG Barr, Alliance Trust and Macfarlane Group, the packaging business, were among those seeing their valuations rise.
John Moore, senior investment manager at Brewin Dolphin, said: “Scottish companies continue to reflect what has been happening in the wider market this year – there are stand-out performers in some areas, while sentiment remains very poor towards other sectors.
“After successfully adding new Covid-19 testing products to its offering, Omega Diagnostic’s shares have been on an incredible run since the pandemic began and were up more than 400 per cent in the first three quarters.
“Braveheart Investment Group and Scotgold have also done very well, the latter boosted by gold’s rise in value.
“The addition of Calnex, the first Scottish IPO [initial public offering] for a couple of years, will provide added intrigue for the final quarter of 2020.
“As we move further into the year, we’re beginning to see a clear polarisation among sectors and the acceleration of trends seen prior to the pandemic.”
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