Pipex inched up after Goldman Sachs added the internet service provider to its “buy” list. The move came amid hopes that management will deliver findings of a strategic review within the next few weeks.

Goldman said: “The market is taking too bearish a view of the company’s strategic value in a consolidating broadband market, while its solid operating performance and potential for cost savings limit the downside risk.” Goldman also noted that Ofcom had proposed lifting restrictions on a rival wireless internet operator, making Pipex’s competing unit more valuable. Shares rose ½p to 13p.

Jessopswas up 2p to 18¼p on suggestions that it could be a target for Merchant Equity Partners, the buyout firm that took control of MFI’s retail chain for £1 last year. With the interest said to be at an early stage, investors expect to see little more than cost-cutting and bank negotiations when the camera retailer delivers a strategic review by the end of the month.

Intercylex was up ½p to 53½p on talk that the cell therapy group will soon release test results for its experimental skin replacement treatment.

Afren gained 6p to 69p after the African oil explorer was highlighted in small-cap sector research by Sanford Bernstein. The stockbroker was also positive on Addax Petroleum, untraded at £18.99, saying: “In a world rife with asset expropriation, tax elevation and insurmountable mature field decline rates, resource-rich West Africa will continue to draw industry interest, and could offer fundamental support for these companies.”

Empyrean Energy gained 4½p to 33p on promising results from a Texas gasfield.

Microfuse, the metals treatment developer, was the day’s top performer, with a gain of 2½p to 8p after one of its early investors finally managed to clear a line of stock at 5p.

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