Afternoon trading October 16, page-572

RE BRN - 01/09/2020 - could this have something to do with it

Why the sudden increase in share price?On 1 September, Brainchip agreed to collaborate through an early access program with VORAGO Technologies to support NASA’s Phase I Radiation-Hardened Neuromorphic Processor Program.The agreement included “payments that are intended to offset the company’s expenses”, however, the exact amount was not specified.In addition to the early access program, the company announced its addition to the S&P/ASX All Technology Index. This likely contributed to buying as funds tracking the index add holdings in Brainchip.On Tuesday, the company received a price query from the ASX requesting if any other information could explain the recent share uptick. The company subsequently responded no.The rapid share price appreciation may be attributable to the VORAGO agreement and index fund buying, however, I would argue the primary reason is speculation amongst investors and day traders, who achieve returns through volatile share prices.