Market Report: Imagination Technologies bounds to the top of the mid-cap FTSE 250 index

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The Independent Online

Rising revenues at Imagination Technologies helped the microchip supplier bound to the top of the mid-cap FTSE 250 index yesterday, despite Credit Suisse warning of troubles down the road.

Imagination's shares rose by 18p to 251.5p after it said licensing revenues were up 32 per cent and royalties had risen by 15 per cent. Roger Phillips, at Investec, said the business "looks to have turned a corner". Despite the recovery, Credit Suisse said it had long-term concerns, with Imagination's shipment targets "optimistic" given the slowdown in smartphone sales.

Activity on the FTSE 100 was again subdued, with unrest in Iraq continuing to overshadow trading. The bluechip index fell 3.49 points to 6787.07.

Shares in Domino Printing Sciences, the inkjet and laser printing group, plunged 123p to 615p on the FTSE 250 despite a 10 per cent bounce in first-half profits. The Cambridge-based company said pricing pressures in Asia and other developing markets would hit earnings over the next two years.

The specialist chemicals group Croda also took a battering, losing 218p to 2188p, after it admitted that the strong pound would probably wipe £6.5m off its second-quarter profits.

Trinity Mirror was in the spotlight as the phone-hacking trial of Rebekah Brooks and Andy Coulson, former employees of rival News Corp, ended. Former Trinity Mirror reporter Dan Evans admitted during the trial to hacking and investors worry about the consequences for the Daily Mirror publisher, whose shares fell by 3.75p to 148p.

Neil Woodford's new fund, Woodford Investment Management, declared a 3.05 per cent holding in power generator Drax Group, whose shares rose 2.5p to 640p, a 3.13 per cent stake in outsourcer Capita, which fell 14p to 1139p, and said it had also snapped up a 13.82 per cent share of the Aim-listed energy and water consultancy Utilitywise, which ended the day 10.5p better off at 300.5p.

Investment group The Hotel Corporation slid 0.32p to 1.47p after it warned that its subsidiary Puma Hotels could fold, although it said it would be fine without the income from Puma.