Market Report: Arm legs it up the Footsie after impressing analysts

While one British tech success story found itself under attack, another was being given a standing ovation yesterday. After US giant Hewlett-Packard admitted that revenues from its £7bn acquisition Autonomy had been "very disappointing", Arm Holdings powered up after impressing scribblers in the Square Mile.

Itself often talked about as a potential takeover target, the Cambridge-based chip designer hosted a day for both analysts and investors on Wednesday in the middle of London and, judging from the response, it seemed to have done the job.

"Rarely have we seen such an attractive investment case," gushed Peel Hunt's Paul Morland, who added that Arm – whose technology is found in both Apple's iPad and iPhone – was a "must-have stock".

He was not the only one advising punters to snap up the stock. Scribes from Investec, Numis and Morgan Stanley were also among those full of praise, although not everyone was so optimistic.

Arm's share price may have lost nearly a fifth since April, but JP Morgan's scribes said they were waiting "for a better entry point". Still, investors sided with the bulls as the group closed 12.8p higher at 495.2p.

A volatile week for the FTSE 100 continued as, after shedding nearly 140 points on Wednesday, the benchmark index shot up 83.64 points to 5,350.05.

Still, with the latest GDP numbers proving disappointing and unimpressive economic data from the eurozone, the mood was hardly carefree.

Although blue-chip losers were definitely a minority, it was a mixed day for the miners following poor manufacturing data from China, with Antofagasta down 5p at 1,027p and Eurasian Natural Resources creeping back 0.1p to 460.6p.

BHP Billiton and Rio Tinto – who rose 37.5p to 1,718.5p and 48p to 2,838.5p respectively – were both being recommended by Jefferies' Christopher LaFemina as long-term investments. Meanwhile, yellow metal digger Randgold Resources jumped by 383p to 5,170p as the price of gold attempted to rally.

On the one-year anniversary of the start of official trading in Glencore's shares, the commodities trader looked as if it was going to set another all-time low. However, by the bell it had managed to edge up 2.35p to 346p – still, a long way from the 530p at which it floated.

There was no end to the pain for HomeServe on the FTSE 250. The emergency plumber, which admitted this week it was being investigated by the Financial Services Authority over possible mis-selling, dipped 7.1p to 144p after Panmure Gordon's Andy Brown slashed his target price by 45p to 145p, saying he struggled "to see any upside" until the probe was over.

Cable & Wireless Communications may have announced it was cutting its dividend in half, but – with this having been widely expected – it did not stop the telecoms group flying up 4.95p, or 17.64 per cent, to 33.01p after its final results. Traders weren't particularly shocked by the size of the move, however, noting the smashing the stock has recently received.

Elsewhere, haulier Stobart ticked up 3.7p to 114p following the news that it was talking to Autologic (3.25p stronger at 14.75p) over making a possible takeover approach for the Aim-listed logistics group.

It seems the current, economic environment means owners are keener to keep a tighter rein on their spending than on their pets. Veterinary medicines firm Animalcare issued a profits warning yesterday as the group fell 24p to 146p on Aim, blaming the fact that sales from its microchip business for cats, dogs and other pets were down by almost a third over the financial year so far.

Long-suffering punters in ATH Resources were once again watching its share price plummet. The British miner, which last year was involved in unsuccessful bid talks, admitted that the low price of coal meant it was delaying the extension of its Glenmuckloch site in Scotland, prompting it down 3p to 10.25p.

Having received a 240p-a-share takeover approach from Thailand's PTT earlier in the week, Mozambique driller Cove Energy was up another 3.5p to 253.5p. Oil giant Royal Dutch Shell (36p higher at 2,075p), whichhas made an offer worth 220p, said it was thinking over what its next step would be

Meanwhile, fellow explorer Ithaca Energy powered up 7p to 172.5p as traders noted that – with the explorer saying earlier in the month that an update on its potential takeover talks would be announced within four weeks – the deadline was not too far away.

News
people'It can last and it's terrifying'
Sport
Danny Welbeck's Manchester United future is in doubt
footballGunners confirm signing from Manchester United
Sport
footballStriker has moved on loan for the remainder of the season
Sport
footballFeaturing Bart Simpson
PROMOTED VIDEO
News
Katie Hopkins appearing on 'This Morning' after she purposefully put on 4 stone.
peopleKatie Hopkins breaks down in tears over weight gain challenge
Arts and Entertainment
Olivia Colman topped the list of the 30 most influential females in broadcasting
tv
News
Kelly Brook
peopleA spokesperson said the support group was 'extremely disappointed'
Life and Style
techIf those brochure kitchens look a little too perfect to be true, well, that’s probably because they are
Sport
Andy Murray celebrates a shot while playing Jo-Wilfried Tsonga
TennisWin sets up blockbuster US Open quarter-final against Djokovic
Arts and Entertainment
Hare’s a riddle: Kit Williams with the treasure linked to Masquerade
booksRiddling trilogy could net you $3m
Arts and Entertainment
Alex Kapranos of Franz Ferdinand performs live
music Pro-independence show to take place four days before vote
News
ebooksAn unforgettable anthology of contemporary reportage
News
news Video - hailed as 'most original' since Benedict Cumberbatch's
News
i100
Life and Style
The longer David Sedaris had his Fitbit, the further afield his walks took him through the West Sussex countryside
lifeDavid Sedaris: What I learnt from my fitness tracker about the world
Arts and Entertainment
Word master: Self holds up a copy of his novel ‘Umbrella’
booksUnlike 'talented mediocrity' George Orwell, you must approach this writer dictionary in hand
News
i100
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

SQL Implementation Consultant (VB,C#, SQL, Java, Eclipse, integ

£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...

Head of IT (Windows, Server, VMware, SAN, Fidessa, Equities)

£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...

Technical Software Consultant (Excel, VBA, SQL, JAVA, Oracle)

£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...

SQL DBA/Developer

£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...

Day In a Page

'I’ll tell you what I would not serve - lamb and potatoes': US ambassador hits out at stodgy British food served at diplomatic dinners

'I’ll tell you what I would not serve - lamb and potatoes'

US ambassador hits out at stodgy British food
Radio Times female powerlist: A 'revolution' in TV gender roles

A 'revolution' in TV gender roles

Inside the Radio Times female powerlist
Endgame: James Frey's literary treasure hunt

James Frey's literary treasure hunt

Riddling trilogy could net you $3m
Fitbit: Because the tingle feels so good

Fitbit: Because the tingle feels so good

What David Sedaris learnt about the world from his fitness tracker
Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Second-holiest site in Islam attracts millions of pilgrims each year
Alexander Fury: The designer names to look for at fashion week this season

The big names to look for this fashion week

This week, designers begin to show their spring 2015 collections in New York
Will Self: 'I like Orwell's writing as much as the next talented mediocrity'

'I like Orwell's writing as much as the next talented mediocrity'

Will Self takes aim at Orwell's rules for writing plain English
Meet Afghanistan's middle-class paint-ballers

Meet Afghanistan's middle-class paint-ballers

Toy guns proving a popular diversion in a country flooded with the real thing
Al Pacino wows Venice

Al Pacino wows Venice

Ham among the brilliance as actor premieres two films at festival
Neil Lawson Baker interview: ‘I’ve gained so much from art. It’s only right to give something back’.

Neil Lawson Baker interview

‘I’ve gained so much from art. It’s only right to give something back’.
The other Mugabe who is lining up for the Zimbabwean presidency

The other Mugabe who is lining up for the Zimbabwean presidency

Wife of President Robert Mugabe appears to have her sights set on succeeding her husband
The model of a gadget launch: Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed

The model for a gadget launch

Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed
Alice Roberts: She's done pretty well, for a boffin without a beard

She's done pretty well, for a boffin without a beard

Alice Roberts talks about her new book on evolution - and why her early TV work drew flak from (mostly male) colleagues
Get well soon, Joan Rivers - an inspiration, whether she likes it or not

Get well soon, Joan Rivers

She is awful. But she's also wonderful, not in spite of but because of the fact she's forever saying appalling things, argues Ellen E Jones
Doctor Who Into the Dalek review: A classic sci-fi adventure with all the spectacle of a blockbuster

A fresh take on an old foe

Doctor Who Into the Dalek more than compensated for last week's nonsensical offering