Uncertainties in Europe and the Middle East have put many investors on edge and as a result money has been coming off the table. And of course higher risk, smaller companies have been the first to feel the brunt of this.
Standing at 3,189 today the FTSE AIM 100 is down almost 3 per cent this week.
"The news flow on the corporate front has taken second place to political headlines," said Atif Latif, director of trading at Guardian Stockbrokers.
"We expect the smaller companies to report strong earnings into the end of 2012 and the key at the moment is being able to pick entry points and taking into account volatile moves."
On a stock-by-stock basis, September's dreaded reporting season has dominated small cap newsflow.
As many small caps are still largely young, pre-revenue companies results season can be something of a slog with little meaningful financial insight to garner, other than the perennial issue of 'cash burn'.
That said, a number of companies were still able to shine through the glut of rehashed, already known disclosures.
Among the standout results was media technology group Zoo Digital (LON:ZOO) which almost doubled in value this week as it told investors that its return to profitability had continued in second half as demand for DVDs stabilised.
Chairman Roger Jeynes said he continues to be optimistic about the current year, but he also warned of the unpredictability of the current economic environment.
Another of the week's performers was Nighthawk (LON:HAWK) which gained 76 per cent since last Friday, when it revealed that the first of four new wells provided a commercial rates in initial tests. This is the first well since Nighthawk's new management took control of the flagship Jolly Ranch project, and the result has buoyed analysts and investors alike.
Yesterday in its interim results statement, which included non-cash write downs relating to the findings of a prior work-over, Nighthawk said it was now entering its second and most important phase of its development plan.
Junior drug developer Summit Corp (LON:SUMM) advanced this week as it was given the go ahead to take its c.difficile drug candidate into phase I clinical trials. This came as it released on Tuesday early stage data that give a hint to the drug candidate's huge potential.
Immupharma (LON:IMM) was another drug firm on the rise. It gained around 26 per cent this week as it told investors it has held discussions with a “number of possible partner companies” for its potential blockbuster Lupuzor.
However, it used Tuesday's interims to showcase the potential of its cancer treatment which is being put through further development. Further clinical trials have begun. And the formulation has shown “impressive efficacy” of about 10 times over the previous version in pre-clinical cancer models, the company said.
Gene specialist Silence Therapeutics (LON:SLN) admitted in Tuesday’s interims that it had been a difficult six months for the company and its staff. However, a successful £5.2 million fundraiser, completed in August, points to a far rosier future.
A change of senior management and the write-down of the value of the key investment has drawn a line in the sand with the past. And the biotech share has now recovered from the July low of 0.75p to now trade above 2.5p.
Biotech investors were also encouraged by Advanced Oncotherapy’s (LON:AVO) results statement which updated the market on the company’s transition following the recent acquisition of a company that is commercialising a mobile radiotherapy device.
Specialist mining contractor Watermark Global (LON:WET) was another winner as it revealed a huge swing into profitability with a £2.7 million profit versus a £629,000 loss in the same period of last year.
Investors also liked Ovoca Gold’s (LON:OVG) statement today in which the Russia focussed gold explorer revealed continued momentum with its priority exploration projects.
Topping the loser’s column was Aortech International (LON:AOR) which today ended a formal process to sell the company. It may sell parts of the business, as it has received interests in its polymer unit, and it is now considering its funding options and seeking offers for the rest of its business.
Intelligence and surveillance technology firm Datong (LON:DTE) and Asian investor China Growth Opportunities (LON:CGOP) were on the slide as well, while Tantalum miner Noventa (LON:NVTA) and oil explorer Clontarf Energy (LON:CLON) were falling also.