Most-bought AIM shares in August 2018

An oil price rally and speculative interest created a buzz on the junior market last month, and there are four new entries in our top 10, writes Lee Wild, head of equity strategy at interactive investor.

While the FTSE 100 fell 4% last month as the strength of sterling and the escalating global trade war took their toll on large caps, the AIM All-Share rose 1% - helped by optimism around Brexit and a resilient UK economy.

Strong economic data out of the US and the threat of sanctions against Iran are keeping oil prices near multi-year highs at $80 a barrel. It's certainly maintaining interest in the sector and helps explain why oil juniors were the top four most-bought AIM stocks last month.

UK Oil & Gas is proving impossible to knock off top spot, heading the rankings for a third consecutive month. Its interest in oil deposits near Gatwick airport could generate potentially massive profits for stakeholders, so speculators have always liked to dabble here. UK Oil's recent decision to buy a bigger share of the Horse Hill discovery only heightens the excitement.

Disappointing news from Bahamas Petroleum Co was cat nip to bargain hunters, seeing an opportunity presented by a two-thirds slump in the share price. That an oil major walked away from funding talks with Bahamas is a real worry, but interest from elsewhere could revive fortunes. It's why the shares are up three places to second spot over the past month.

Angus Energy jumped five places to fourth. Like UK Oil, it has a promising portfolio of onshore assets in the south of England – Brockham, Lidsey, Balcombe and the Holmwood licence - that attracts speculators. It pushed perennial favourite IQE down three places from second spot in July as half-year results failed to prevent a further unwinding of stellar gains made in 2017.

Elsewhere, reports that mining permits would finally be processed by Slovenian authorities stirred interest in Ascent Resources at three, while online fashion retailer Boohoo re-entered the top 10 at six after a rare decline in popularity the month before. Faron Pharmaceuticals and Ternfollowed behind.

Fevertree Drinks is now AIM's second largest company following a 71% rally this year, but remains an attractive momentum play. From humble beginnings, the Fevertree brand now hogs shelf space in supermarkets, pubs and restaurants everywhere, and drinkers now specify Fevertree tonics at the bar.

The founders have just sold stock due to 'institutional demand' and there's currently little sign of this incredible story fizzling out anytime soon.

Most-bought AIM stocks by interactive investor's customers in August 2018

*July 2018

Source: interactive investor, 14 September.