AIM vs ASX performance in recent months

Recent global market uncertainty caused by the US “credit crisis” has caused fund raising levels on AIM to fall in the first few months of 2008, in common with the ASX and most other global markets. However, the relative performance of AIM over the past 6 months has been strong compared to the ASX.

The chart at the foot of the page shows the comparative returns, over the period from 1 October 2007 to 31 March 2008, of the FTSE AIM All Share index, the S&P/ASX All Ords and the S&P/ASX Small Ords indices.

Whilst the credit crisis hit UK markets earlier than the ASX, comparative returns for the first quarter of 2008 are significantly higher on the AIM indices than on the ASX indices.

Almost £900m was raised by AIM companies during January and February 2008 further proving that AIM is a viable alternative for companies seeking an international market on which to list and raise funds.

There is still significant interest in AIM from around the world and the AIM market remains firmly established as the world’s leading growth market, mainly due to the access it provides to the UK capital markets and its flexible regulatory environment.

For more in-depth analysis of the AIM market in recent times, click here to download the Grant Thornton AIM Market Survey (for the year ended 31 December 2007).

Author: Rozanne Ichikowitz
Rozanne is a Director in Grant Thornton’s Corporate Finance practice. Rozanne Specialises in the AIM Market and acts as a local contact to Australian companies seeking a listing on AIM, as an extension to Grant Thornton’s Capital Markets Team based in London..

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