ASR in The Independent: ‘London Stock Exchange AIM is a zombie market not fit for purpose’
16th DEC. 2023
In The Independent’s recent piece, Chris Blackhurst discusses the performance of the Alternative Investment Markets. Charles Cara of Absolute Strategy Research in London discussed the poor health of the junior AIM market.
Cara: “The near halving of the FTSE AIM index has returned it to its pre-pandemic level. Investors have seen no gain over 20 years.” Cara writes: “While the FTSE100 has returned 12.6 per cent over the last two years, investors in the more domestically orientated FTSE250 have lost 19 per cent. But the losses of the AIM All Share over the same period are even more stark: AIM investors have lost almost half of their money.”
AIM has generated no return for investors, even including dividends, for the last 20 years. “This lack of return,” says Cara, “could be blamed on these stocks being small UK companies, but those two characteristics have not been such a hindrance to similar stocks with full listings on the London Stock Exchange: the FTSE Small Cap index has increased five-fold over the last 20 years while the FTSE250 has posted 680 per cent.”