Value of daily shares trading in AIM listed companies rises by 64% in 2017

Publications that covered this story include City AM on 12 March and Evening Standard and Daily Mail on 13 March.
  • Liquidity of AIM listed companies reaches a decade high

Companies listed on the UK’s junior market have seen the liquidity of their shares rise by 64% over the last twelve months*, as the Alternative Investment Market (AIM) benefits from strong equity growth across the globe, our research shows.

The average daily value of shares traded per company listed on the Alternative Investment Market (AIM) has surged over the last year, rising to £279,421 from £170,561 (see full data below).

The AIM 100 index had one of its best years on record in 2017, increasing by a third to 5,408, buoyed by the strength in worldwide equities.

The recovery of mining and natural resources stocks on AIM in 2017 have helped fuel liquidity on the market.

The AIM market benefitted from the UK economy being much more resilient than many analysts predicted and strong US growth, in part due to the promised tax cut that was realised in December 2017.

AIM listed companies have traditionally been affected by political and economic uncertainty, such as the ongoing Brexit negotiations and the surprise result of the 2017 general election. However, June 2017 saw the highest average trade volume per company ever (£300,740), suggesting that the market has matured and become more resilient in recent years to political pressures.

In addition, the AIM Market has consolidated from a high of 1,694 companies in  December 2007 to 960 in December 2017, as it has purged some of the smaller AIM listed companies. This has led to AIM being made up of increasingly stable high quality companies.

Laurence Sacker, Managing Partner in our London office, comments: “The huge increase in liquidity on AIM is a reflection on how far the market has been helped by the recovery of the resources sector.”

“AIM is also slowly getting closer towards its ambition of being a market of growth companies institutions can invest in. Success stories such as Fevertree and ASOS have seen more funds entering the AIM market to find the next success story.”

“Whilst the market was undoubtedly helped by the global boom in equity trading in 2017, the increased trading volumes shows that AIM has established itself as a serious market for investors.”

Liquidity of AIM-listed companies hits a 10-year high – average amount traded per company per day on AIM

*The London Stock Exchange have changed their methodology to capture more trading activity on a month by month basis and as a result has restated previous years’ figures. These amendments are reflected in our figures and have been verified by the London Stock Exchange.