Market Report: Imagination tumbles after blow from TI

It has been said that when America sneezes, the rest of the world catches a cold. British chip maker Imagination Technologies was left snivelling and shivering yesterday after its US partner Texas Instruments revealed its intentions to bow out of the competitive smartphone sector.

FTSE 250 member Imagination tumbled 50p to 470p – a 9.62 per cent drop – as scribes at Investec calculated that Texas's plan could mean Imagination could take a £10m hit.

Texas revealed at an investor conference in the States that it will refocus its investments into markets such as car makers rather than making chips for smartphones and tablets.

But Investec said Texas's statement "lacks clarity" and kept its buy recommendation for Imagination shares, but will place its target price under review.

Imagination's shares over the long term have served investors well. Steadily rising since the end of 2008 when they were 62.50p, they reached a high earlier this year of 717p. But the Hertfordshire-based group, which designs the graphic-processor units in many varieties of smartphones, has come under pressure to reduce its dependency on supplying Apple, which is also one of its shareholders.

It wasn't the only chip maker to suffer. On the FTSE 100, fellow Brit tech firm Arm Holdings also fell back 19p to 566p.

There was better news on AIM for Oxford Advanced Surfaces. It said it was making "good progress toward commercialisation" of its anti-reflective technology for tablet and smartphone screens and shares ticked up 1.25p to 11.12p.

A wave of depression engulfed the City as traders let the worsening eurozone situation get the better of them. Civil unrest escalated in Spain and Greece and uncertainty over Spain's acceptance of the terms of a bailout sparked a sell-off across Europe. The FTSE 100 tumbled more than 1.5 per cent as US data on falling new home sales added to the morose outlook. The FTSE 100 sank 91.62 points to 5,768.09.

Despite the melancholy, some traders found the energy for takeover gossip. Vague whispers that private equity firms are eyeing National Grid circulated. But the shares did not respond and were left down 2p to 691.5p.

Miners' and bankers shares suffered as investors' previous passion for risk disappeared. Anglo American's 80 per cent-owned Anglo American Platinum said it will start "disciplinary action" if miners at its Rustenberg operations in South Africa do not return to work. Anglo American retreated 69.5p to 1,831p. The strife-hit region's latest casualty is AngloGold Ashanti. The third-largest gold producer by sales said it has been forced to stop work due to strikes.

Despite the lack of confidence, analysts at Exane BNP Paribas still think the FTSE 100 is "appealing". Exane's Ian Richards said: "Even after the summer rally we still see appeal. Addressing a common investor concern, we show that after controlling for composition changes over the last decade, the market is still trading 'cheap' relative to history."

Almost two years after four Russian oligarchs threw a giant spanner in the works of BP's Arctic ambitions, the foursome are back.

This time the talk is they want to buy BP's entire 50 stake in TNK-BP – the half they don't already own. Alfa Access-Renova (AAR) – the consortium that represents Mikhail Fridman, German Khan, Viktor Vekselberg and Len Blavatnik – had offered to buy a 25 per cent stake for $10bn (£6.1bn) but rumours emerged that they plan to up this offer.

The bid is a further complication for BP's Arctic assault. It is designed to outmanoeuvre Rosneft, which has already offered to buy BP's stake and has begun raising up to $15bn ($9.3bn) of debt to finance a cash-and-shares deal.

BP has been pursuing a deal with Rosneft to achieve its planned expansion into the Russian Arctic. A deal with Rosneft would see BP sell its stake in TNK-BP in return for a stake in state-owned Rosneft. The news hurt BP's share price: it lost 7.65p to 438.35p.

In January 2011 legal action from AAR forced BP to abandon the original proposed joint venture and share swap with Rosneft. AAR has until mid-October to make a formal bid. After that the deal could be opened out to other suitors.

Suggested Topics
Arts and Entertainment
Christian Grey cradles Ana in the Fifty Shades of Grey film
filmFifty Shades of Grey trailer provokes moral outrage in US
Life and Style
The veteran poverty campaigner Sir Bob Geldof issues a stark challenge to emerging economies at the Melbourne HIV/Aids conference
Arts and Entertainment
Benedict Cumberbatch and John Malkovich talk Penguins of Madagascar at Comic-Con
comic-con 2014Cumberbatch fans banned from asking about Sherlock at Comic-Con
Arts and Entertainment
Chris Pratt stars in Guardians of the Galaxy
filmGuardians Of The Galaxy should have taken itself a bit more seriously, writes Geoffrey Macnab
Sir Chris Hoy won six Olympic golds - in which four events?
Life and Style
People may feel that they're procrastinating by watching TV in the evening
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Graduate Recruitment Resourcers - Banking Technologies

£18000 - £25000 per annum + OTE £40,000: SThree: Huxley Associates are looking...

Associate Recruitment Consultant - IT

£20000 - £25000 per annum + OTE £40,000: SThree: Computer Futures has been est...

Business Analyst

£300 - £350 per day: Orgtel: Job Title: Business Analyst Rate: £300 - £350 per...

Day In a Page

Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little
Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform