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Symphony Environmental (SYM) Share Price Edged Higher on UK Govt Decision on Plastics

Simon Mugo trader
Updated 29 Nov 2021

Symphony Environmental Technologies plc (LON: SYM) share price edged 1.17% higher after welcoming the decision by the UK government department for Environment, Food and Rural Affairs (DEFRA) to exclude oxo-biodegradable plastic from its “nuisance list.”

The “nuisance list” refers to the list compiled by the government of different types of plastic that are “frequently littered and problematic plastic”.

Symphony Environmental also mentioned that the Scottish government had taken a similar approach towards oxo-biodegradable plastic after draft regulations released in November excluded this unique type of plastic.

The company, whose mission is to make rubber and plastic products “smarter, safer and more sustainable”, said that the decisions made by the two governments were based on multiple research studies.

One such study is the four-year Oxomar study sponsored by the French government, proving that oxo-biodegradable plastics biodegrade more efficiently than conventional plastics, even in oceans.

Another study conducted by the Queen Mary University London demonstrated that low-density polyethylene (LDPE) made using Symphony’s d2w technology biodegraded 90 times faster than ordinary LDPE after just 35 days.

Michael Laurier, Symphony Environmental’s CEO, said: “We welcome the position taken by the UK and Scottish Governments, and we will now be putting more effort into explaining and marketing our d2w technology in the UK,”

Earlier this month, Symphony Environmental entered the Indian market via a joint venture with Indorama Corporation Pte. Ltd. and appointed the JV known as Symphony India the exclusive rights to sell its masterbatches in India.

The company noted that India is home to 17.7% of the world’s population, which provides a vast target market for its d2w and d2p masterbatches. Like many countries, India is struggling with a plastic pollution problem, and the answer is not to ban plastic.

Symphony intends to provide a viable option to plastic packaging in the country via its biodegradable plastic products.

However, the company’s recent progress is not reflected in its share price, which has been trading in a sideways range since early August. It appears investors are still undecided on the company’s future price direction.

Long term investors may fund the current prices quite attractive since Symphony shares are trading near the bottom of the range.

*This is not investment advice. Always do your due diligence before making investment decisions.

Symphony Environmental share price.

IG chart of Symphony Environmental share price 29-11-2021
Source: IG

Symphony Environmental shares edged 1.17% higher to trade at 26.05p, rising from Friday’s closing price of 25.75p.

Should you invest in Symphony Environmental shares?

Symphony Environmental shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Symphony shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading