Market Report: Samsung deal takes the heat off Wolfson

Samsung has put paid to market fears about future growth at Edinburgh-based Wolfson Microelectronics by signing a new partnership deal. The worry for punters had been that Wolfson could have been losing out to other Samsung suppliers which were getting close to the Korean mobile phone giant, whose Galaxy S3 was the most popular smartphone brand of 2012.

But the news of a deal for Wolfson to become Samsung's "primary audio partner" was music to the ears of shareholders. Wolfson said the deal was a "multi-year" intellectual property licensing and component supply agreement.

Liberum Capital analysts said the deal "de-risks the Wolfson story as it now has a strong and growing position with the largest smartphone original equipment manufacturer". Liberum rates the shares a buy with a 230p price target, and they dialled up a 9p gain to 179p on the news.

Wolfson's knowhow will be included in the Galaxy 4 phones to be launched this month.

On the benchmark index, an absence of bad news from the eurozone and reasonable jobs figures from the US meant investors were continuing to return to equities, albeit in weak volumes. The FTSE 100 advanced another 28.77 points to 6,416.14.

The clothing to food retailer Marks & Spencer was one of the beneficiaries, and the shares were 16.6p better off at 400.4p after it revealed a rise in quarterly sales – a strong food business offset a fall in clothing sales. Research from Markit found that the short interest – the number of shares out on loan – in M&S is close to the annual low.

Another retailer in favour on the bluechip index was the luxury brand Burberry. It will issue a trading update next week which analysts at Société Générale think will clarify the integration and expansion of its perfume and beauty businesses. The shares sashayed up 38p to 1,318p.

The Russian steel producer Evraz, down 23.9p to 185.8p, got the wooden spoon after revealing losses. The fall put its position in the FTSE 100 under threat. The shares have lost about 30 per cent since the start of the year and are well below their November 2011 flotation price of 320p.

Over on the mid-tier index Man Group, the world's largest listed hedge-fund manager, got a boost from news that it won't need to hold as much cash on its balance sheet as it had thought.The Financial Conduct Authority has cut the amount of capital it must hold by $250m (£162m), after the new watchdog switched Man to a limited licence group instead of a full-scope group. Man did warn that its Internal Capital Adequacy Assessment Process submission remains subject to review by the FCA. This could result in "higher or lower capital requirements in the future". But for now punters were pleased and the shares jumped 6.6p to 104.3p. The rise followed two previous days of gains totalling 20 per cent – the best three-day gain in four years.

Man's share price has been suffering since 2011 when it began to report outflows from across its funds. Its shares picked up slightly late last year when rumours of potential takeover interest emerged. The hedge-fund star Crispin Odey built up a 5 per cent stake in anticipation of a bid for the group from a larger US rival. The group was also recently boosted by news that the asset value of its flagship fund, AHL, rose 2.1 per cent last week.

Fellow mid-tier fund manager Ashmore was also having a good day. The emerging markets investment manager said it had won new clients, and the shares ticked up 46.1p to 401p – top of the table on the mid-caps.

On Aim, Leni Gas & Oil said it was adding a second rig to its Goudron programme in Trinidad, but its shares were static at 0.84p.

Noventa, the Aim-listed tantalum concentrate supplier, signed an agreement with Richmond Partners Master on the settlement of the loan on which its indirect subsidiary, Highland African Mining Company Minerals, had defaulted. Noventa shares declined 0.25p to 0.48p.

Park Group, the Christmas savings club business, reported steady sales growth, and the shares collected a 1.75p rise to 59.75p.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory