Market Report: Arm dives as boss cashes in £2m worth of stock

It is hardly a vote of confidence when your boss decides it is time to sell some shares, as Arm Holdings found to its cost yesterday. The chip designer closed deep in the red last night, despite its major customer Apple reaching new heights, after it announced that chief executive Warren East had cashed in more than £2m -worth of stock.

The City is used to Arm being supported by bullish news from Apple, and there has been plenty of that recently. The US tech giant yesterday became only the fifth company of all time to see its market capitalisation move above $500bn (£314bn) amid excitement over the expected upcoming launch of the iPad 3.

Yet instead of following Apple – whose tablets use its technology – higher as traders expected, Arm dropped 14p to 569.5p after revealing that Mr East had decided to get rid of 350,000 shares at 574.55p a pop, netting him a cool £2.01m.

It was also not helped by Bernstein Research's Pierre Ferragu reiterating his "sell" advice and warning that its "recent bump in royalty revenue growth will slow down". In addition, the analyst predicted a slowdown in its licensing revenues, although he did play down competition concerns regarding Intel, saying it was "still a long way from being a credible threat... in smartphones and tablets".

Overall, a late slide meant the FTSE 100 dropped below the 5,900 level, with the blue-chip index finishing 56.4 points worse off at 5,871.51. The second round of cheap loans from the European Central Bank failed to prompt much movement, and the real damage was done by US Federal Reserve chairman Ben Bernanke's warning that – following promising GDP figures from the country – the market should not get too excited over recent positive economic data.

Essar Energy slumped 8.5p to 104.9p, setting a new, all-time low, after it was hit by a drastic downgrade from Credit Suisse. The broker's scribblers slashed their target price by nearly two-thirds, cutting it from 435p to 155p, and they also removed their "buy" rating following Monday's disappointing final results.

The group, which is set to be relegated from the Footsie after next week's review of the indices, has suffered a torrid run, shedding more than 80 per cent over the last year. Vague speculation was reheated earlier in the week that its majority shareholders may be interested in taking it private again, although the idea has been widely dismissed.

ITV was attracting an appreciative audience after the X Factor-broadcaster beat market forecasts by posting a 13 per cent jump in its full-year earnings. In response, the group jumped to the Footsie's summit, shifting up 5.45p, or 6.77 per cent, to 85.95p.

In a poor session for the diggers, Xstrata failed to hold on to its early gains. The Anglo-Swiss miner slipped 21.5p to 1,200p despite HSBC claiming that calls for an improvement in the terms of its planned merger with Glencore were likely to be answered.

Saying the commodities trader, which fell 6.35p to 432p, would probably need to provide "some form of a sweetener", the broker's analysts calculated that it would be fairer if Glencore raised its offer from 2.8 to 3.3 shares for every one of Xstrata's.

Elsewhere, HSBC edged back 4p to 555.35p amid reports claiming the bank is nearing a $1bn disposal of its general insurance business to France's AXA and Australia's QBE.

At the same time peer Standard Chartered crept down 4.5p to 1,619p, even though it announced record earnings for 2011 – the ninth straight year it has managed the feat.

Down on the FTSE 250, Bodycote was fired up to a new, all-time high by revived bid talk. The engineer – which jumped nearly 16 per cent in one session last week after releasing its final results – was lifted another 20p to 420p as Jefferies' Andy Douglas upgraded his advice to "buy" and said it "could be a potentially interesting asset to a predator".

Aberdeen Asset Management was knocked back 14.2p to 239.35p by Credit Suisse selling another chunk of its shares, with the Swiss bank having already got rid of a 5 per cent stake last week.

International Personal Finance finished in pole position after the emerging markets lender announced annual pre-tax profits of £100.5m – its highest ever – prompting it up 10.48 per cent to 247.7p.

Thomas Cook continued its remarkable recent rally, with the troubled tour operator flying up another 22.83 per cent to 28.25p. It means the small-cap group's share price has more than doubled over the last six sessions, with the bounce prompting vague speculation bitter rival Tui Travel (up 0.3p to 198p) could make an approach. However, the idea was greeted with disbelief by many, who pointed out the severe competition concerns such a tie-up would cause.

Suggested Topics
Arts & Entertainment
A stranger calls: Martin Freeman in ‘Fargo’
tvReview: New 10-part series brims with characters and stories

News
peopleActress speaks out against historic sexual assault claims, saying things have 'gone quite far now'

Arts & Entertainment
Shaun Evans as Endeavour interviews a prisoner as he tries to get to the bottom of a police cover up
tvReview: Second series comes to close with startling tale of police corruption and child abuse
Sport
Raheem Sterling and Luis Suarez celebrate during Liverpool's game with Norwich
football Another hurdle is out of the way for Brendan Rodgers' side
VIDEO
Life & Style
Guests enjoy food and cocktail parings by Chefs Jimmy Bannos, Jimmy Bannos Jr, Daniel Rose and Mindy Segal with mixologists Josh King and Alex Gara at Bounty & Barrel: A Jack Daniel's Single Barrel Dinner Series at Heaven on Seven on April 9, 2014 in Chicago, Illinois.
news Sprinkle Palcohol 'on almost any dish' for 'an extra kick' firm says...
Arts & Entertainment
Charlotte Brontë, the English novelist, poet and the eldest of the three Bronte sisters who lived into adulthood, has been celebrated with a Google Doodle depicting her most famous novel, Jane Eyre.
arts + ents "Reader, they doodled her".

Arts & Entertainment
Schwarzenegger winning Mr. Universe 1969
arts + entsCan you guess the celebrity from these British Pathe News clips?
News
Portrait of Queen Elizabeth-II by David Bailey which has been released to mark her 88th birthday
peoplePortrait released to mark monarch's 88th birthday
Arts & Entertainment
The star of the sitcom ‘Miranda’ is hugely popular with mainstream audiences
TVMiranda Hart lined up for ‘Generation Game’ revival
Life & Style
The writer, Gerda Saunders, with her mother, who also suffered with dementia before her death
healthGerda Saunders on the most formidable effect of her dementia
Arts & Entertainment
Oxegen in Ireland has been axed as promoters decide it is 'no longer viable'
arts + ents Promoters have axed the event as it is 'no longer viable in current form'
News
The troubled star is set to give fans the biggest insight into her life away from the headlines
people Star made the announcement during the final episode of the programme, entitled Lindsay
News
YouTube clocks up more than a billion users a month
mediaEuropean rival Dailymotion certainly thinks so
Arts & Entertainment
The original design with Charles' face clearly visible, which is on display around the capital
arts + ents
Arts & Entertainment
‘Self-Portrait Worshipping Christ’ (c943-57) by St Dunstan
books How British artists perfected the art of the self-portrait
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Database Team Lead ( Leadership, Sybase, Computer Science)

Negotiable: Harrington Starr: Database Team Lead ( Leadership, Sybase, Compute...

C#.NET Delphi SQL Developer (C#,DELPHI,SQL)

£40000 - £50000 per annum + Bonus+Benefits+Package: Harrington Starr: C#.NET D...

VB.NET SQL Junior-Mid Level Developer (VB.NET,SQL,Excellent com

£25000 - £35000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET S...

Trade Support, Application Support, Operations Analyst, CRM MS

£45000 - £55000 per annum + Bonus and Benefits: Harrington Starr: Trade Suppor...

Day In a Page

Rubin ‘Hurricane’ Carter: The man who could have been champion of the world - and the Bob Dylan song that immortalised him

The man who could have been champion of the world

Rubin ‘Hurricane’ Carter and the Bob Dylan song that immortalised him
Didn’t she do well?

Didn’t she do well?

Miranda Hart lined up for ‘Generation Game’ revival
The Middle East we must confront in the future will be a Mafiastan ruled by money

The Middle East we must confront in the future will be a Mafiastan ruled by money

In Iraq, mafiosi already run almost the entire oil output of the south of the country
Before they were famous

Before they were famous

Can you guess the celebrity from these British Pathe News clips?
Martin Freeman’s casting in Fargo is genius

Martin Freeman’s casting in Fargo is a stroke of genius

Series is brimming with characters and stories all its own
How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players