AIM 'likely to be in doldrums for a while' - Business - Evening Standard
       

AIM 'likely to be in doldrums for a while'

The depression over London's secondary stock market AIM is likely to continue for some time, according to small-cap broker Investec.

A report into the state of the lightly regulated market says an apparent recent relief in its indices is misleading.

The Aim All Share index collapsed by 62% in 2008 but first-quarter data showed that it was up by 4.6% year on year.

However, Roger Cursley Investec's UK strategy analyst, fears that other data, such as 77 delistings in the quarter, just one flotation and share trading volumes down 10%, speak louder.

"The market remains effectively closed to new entrants, and the high number of departures is an ongoing cause for concern," said Cursley.

"It is likely to require the passage of a considerable period of time before AIM can aspire to the profile of an internationally renowned growth market seen briefly in the mid-2000s."

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