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Though the AIM fell overall on Friday, some resource companies were able to beat the trend, with London Mining gaining a whopping 190 percent on reports that it may be bought by India’s JSW Steel.
The FTSE AIM All-Share index (INDEXFTSE:AXX) fell 1.67 percent, or 12.08 points, to 710.44 points on Friday. Stocks across the world fell at the end of the week due to investor concern about an economic slowdown, according to Investing.com. European economic indicators are fairly weak, while the economies of China and Japan are also struggling. In particular, the publication notes that mining stocks suffered under these conditions.
Despite the market’s negative tone this morning, London Mining (LSE:LOND) performed well. The iron ore producer defied market conditions and made a massive one-day gain, rising 190.32 percent, or GBP2.95, to trade at GBP4.50. After seeing its share price crash earlier this year, things are looking up for London Mining; Reuters reported Friday that the miner is very close to being acquired by Indian steelmaking giant JSW Steel (NSE:JSWSTEEL).
Other resource companies beat the trend as well, with Beacon Hill Resources (LSE:BHR), a steel industry player, gaining 37.93 percent, or GBP0.06, to trade at GBP0.20, while exploration company Premier Gold Resources (LSE:PGR) rose 33.33 percent, or GBP0.02, to trade at GBP0.08.
On the downside, Polemos (LSE:PLMO) fell 19.05 percent, or GBP0.02, to trade at GBP0.12. The oil and gas investment company was the only resource company to fare poorly on the AIM today, despite larger resource companies not doing so well on other exchanges.