Tumultuous weeks ends on a positive note; tariffs claim their first victim

It has been a rollercoaster week for global stock markets, which first dived amid US tariff, trade war and recession concerns only to whipsaw back when President Trump placed a 90-day hold on levies.

It’s so far left the FTSE 100 around 1% in the red. Small-caps, by contrast, fared much better, ending the week up 1.4%. That said, the ride to get this point was a fairly scary one, full of undulations.

This comparative outperformance of the blue-chip index shouldn’t fool anyone. The growth company benchmark is in serious decline amid lack of interest in the sector, low liquidity and a defection of talent to the private market.

In the year to date, the AIM All-Share is down 11% at 645, but standing back, the picture is grim. It has more than halved in value from its peak in early September 2021.

An early victim of the trade war was Belluscura PLC (AIM:BELL), which fell 40%.

It makes portable oxygen concentrators for people who struggle to breathe and withdrew its financial guidance for the current year due to the new US tariffs on China.

The medical device maker said a "significant proportion" of its oxygen concentrators, raw materials and component parts are currently manufactured in China, where President Trump has imposed levies of up to 125% on some goods.

The week’s biggest loser was mini-microcap Nativo Resources, which dropped 46% and is currently valued at £322,000. The catalysts appear to have been the issue of shares and warrants to acquire the Morrocota Gold Mine in Peru.

A share issue on an altogether bigger scale was behind the 20% drop in Gemfields Group Limited (AIM:GEM). The emerald miner and marketer raised around £23 million via a rights issue. The funding will be used to put the company on firmer financial footing following a challenging phase of trading. It will also provide the headroom to complete a second processing plant.

It was a rough week for investors in podcast platform Audioboom Group PLC (AIM:BOOM) (down 23%), which delivered what Cavendish described as a ‘robust’ set of prelims accompanied by an upbeat trading update. The broker values the stock at 1,300p, more than three times the current price. Chairman Michael Tobin clearly sees some value as he dipped into the market to buy shares.

Research from Peel Hunt last week warned that UK small-caps are being picked off by cashed-up predators, with bargain-basement valuations and a lack of investor appetite cited for the trend.

As if to underline the point, Induction Healthcare Group PLC (AIM:INHC, OTC:IDDHF), which connects patients and doctors digitally, has agreed to be bought out by Canadian software group VitalHub for £9.7 million. The shares ended the week 58% higher.

Shares in ATOME PLC (AIM:ATOM) jumped 55% after the company signed a £355 million construction contract for its flagship green fertiliser plant in Paraguay. Swiss engineering group Casale will deliver the project, which aims to produce 260,000 tonnes of low-carbon fertiliser annually using 100% renewable power. At 43p, the shares are a snip, says Stifel. The American bank thinks they are worth 130p.

It was a case of back from the dead for Minoan Group PLC (AIM:MIN), whose shares advanced 48% after a collapse prompted by worries over its financial position. Behind the scenes, the holiday group is scrambling to finalise a rescue deal with DAGG LLP, its main lender, which is owed around £1.2 million and has been charging default interest of 22% since January. The rise may foretell something more positive. Still, the stock has lost around 62% of its value this year, and trading will be suspended on May 1 if no resolution is found.

Cobra Resources Plc (LSE:COBR) rose 23% after telling investors it will soon start sonic drilling at its Boland rare earth project in South Australia. The programme, which uses high-frequency resonant energy, will comprise up to 15 holes to assess mineralisation and inform a future resource estimate. It follows a prior air core drill programme that proved successful.

Directa Plus PLC (AIM:DCTA, OTC:DTPKF) advanced 7% after telling investors it has generated €2 million of revenue in its first quarter, a 40% improvement on last year.

Renalytix PLC (AIM:RENX) shares moved 3% higher on an upbeat trading update, revealing a 20% rise in third-quarter revenue. The company, which specialises in AI-enabled in vitro diagnostics, processed more than 1,000 billable kidney tests in the quarter.

Finally, returning to the watch list. We flagged 4Global, the sports analytics specialist valued at just over one times forecast revenues. This week it landed a chunky £500,000 contract with UK Sport that paves the way for similar deals.