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.

Junior market: Right now, AIM is trading almost 40 per cent below its 10-year average and 60 per cent behind the FTSE All-Share

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.

Symphony Environmental rocketed 100 per cent after securing £2.5million from new investor Quantum Leap, a Vermont-based wealth manager, subscribing at a significant premium.

Mosman Oil and Gas rose 42 per cent after unveiling its maiden resource estimate for the Sagebrush Project in Colorado, pointing to early potential for fast-track helium and hydrocarbon production.

Kromek climbed 19 per cent after flagging full-year revenue and profit ahead of expectations, underpinned by strong momentum in its imaging and detection businesses. A key driver was a landmark deal with Siemens Healthineers.

Among the laggards, Argentex plunged 94 per cent after lining up emergency funding from IFX Payments and announcing the exit of almost half its board, including Lord Digby Jones. 

The £20million credit facility comes with a 15 per cent interest rate and a 7.5 per cent non-utilisation fee.

Ocean Harvest Technology dropped 76 per cent after the animal feed group said it urgently needs new funding to survive beyond mid-June. Talks continue, but no commitments have yet been made.

Mirriad Advertising slumped 34 per cent after warning it may enter administration within days unless fresh funding is secured. Talks over a takeover collapsed at the end of April.

The pain continued at Totally, down 61 per cent. After last week’s profit warning and CFO exit, the group disclosed a historic medical negligence claim that may exceed its £10million insurance cover.

And finally, Arecor Therapeutics looks seriously mispriced, according to Panmure Liberum. 

The shares, trading around 40p, should be worth 245p, the broker says, pointing to the untapped potential of its insulin and peptide delivery platform.

At the heart of the bull case is AT278, the only ultra-concentrated, ultra-rapid insulin in clinical development. Its faster delivery in smaller volumes makes it a strong contender for next-gen mini pumps, especially in the large type 2 diabetes market.

Arecor also raised £500,000 this week through the sale of its Tetris Pharma subsidiary to Aspire Pharma, giving it more room to focus on its expanding drug pipeline.

For all the breaking small- and mid-cap news go to www.proactiveinvestors.co.uk.

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