Market Report: Arm is strong on Apple chip hopes

A pricey new smartphone was a reason to dislike Apple yesterday, so it was left to microchip designers to get the City excited. Apple's new smartphones all use 64-bit microchips, which is rather good news for Cambridge-based Arm Holdings.

Arm's 64-bit chips may mean higher royalty fees from Apple, and the popularity and success may lead to other devices also using these clever chips that make phones quicker and use up less battery.

Liberum Capital's experts said that Apple's use of the chip will "help compensate" Arm in the face of a move to cheaper phones that would have "put pressure on Arm's average royalty per chip".

Arm took the top spot on the blue-chip index and some traders even speculated that Arm could again become a bid target. The shares jumped 45.5p to 986.5p but are behind their all-time highs in May of 1,111p.

Mobile graphics microchip maker Imagination Technologies is also expected to benefit from Apple's new iPhone 5S, and it was 4p better at 306p.

Apple itself was faring less well. By the time the London market had closed It was off around 5 per cent. A raft of analysts, including Bank of America Merrill Lynch, Credit Suisse and UBS, downgraded it to neutral. Credit Suisse said "its pricing strategy has limits", and UBS was worried it "lacked competitiveness in key growth markets."

The London market was somewhat subdued, and better-than-expected UK employment data gave rise to questions about the pledge by the Bank of England's Governor, Mark Carney, to keep rates on hold until 2016.

The FTSE 100 index ended up just 4.44 points at 6,588,43. Brenda Kelly, a senior market strategist at IG, said: "The FTSE 100 has failed to capitalise on Tuesday's upside momentum, as investors took back profits and numerous stocks going ex-dividend shaved some points off the UK benchmark. "

Insurer Admiral was one of these, and took the wooden spoon, down 53p to 1,227p.

Mobile giant Vodafone's £6.6bn take-over of Kabel Deutschland hung in the balance as only 20 per cent of shareholders in the German broadband and TV firm have accepted the deal ahead of last night's midnigth deadline. A huge wave of late votes was expected, but it was still far from clear if Vodafone will get 75 per cent acceptance, and it will not be official until Monday. It ticked up 2.25p to 210.15p.

Tesco sold its loss-making US business Fresh & Easy's 150 stores to US group Yucaipa at a cost of another £150m – on top of £1bn of previous writedowns. Despite the expensive departure, the City's retail experts decided it was good news for investors. Deutsche Bank said it represented a "clean break", and Shore Capital's Darren Shirley and Clive Black said "it is progressing" and, with "self-improvement in tow", the prospect of "improving free cash generation and rising returns comes closer too".

Mr Shirley admitted that "turning Tesco around was never going to be a quick or easy process" but it was now in a better position. The group has, over the past few months, quit the US and Japan, agreed a better deal for its Chinese operations, and reduced its large store developments in Europe. , Mr Shirley rated the supermarkets group a buy, as did Oriel Securities' Jonathan Pritchard, who said: "Management is now starting to get into a position where its global portfolio is in the shape that it wants it." Oriel awarded a 425p target price but Tesco was 0.65p worse off at 371.4p.

Over on the mid-tier index, gold digger African Barrick Gold's chief operating office Marco Zolezzi has left following the departure of chief executive Greg Hawkins last month. The shares improved 3.6p to 170p.

On AIM, African Minerals – the miner founded by colourful entrepreneur Frank Timis – tumbled 28.5p to 167p when it revealed it will scotch expansion plans for its mine in Sierra Leone, and has curbed output forecasts.

North Sea-focused oil group Ithaca Energy jetted up 18.25p to 144.75p after revealing better-than-expected results from first test results of four wells at its Stella field.

Drug discovery group Summit, which is focused on research for Duchenne Muscular Dystrophy and the hospital superbug C difficile revealed new positive data and was 0.75p healthier at 12p.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there