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
Sport
The sun rises over St Andrews golf course, but will it be a new dawn for the Royal and Ancient Golf Club?
sportAnd it's Yes to women (at the R&A)
Arts and Entertainment
Friends is celebrating its 20th anniversary this year
tvSeries celebrates 20th anniversary
Sport
Yaya Touré (left) and Bayern Munich’s Spanish defender Juan Bernat
footballToure's lack of defensive work is big problem for City
Voices
voicesApple continually kill off smaller app developers, and that's no good for anyone
PROMOTED VIDEO
Arts and Entertainment
Liam Neeson said he wouldn't
tv

Liam Neeson's Downton dreams

Sport
Wembley Stadium
footballNews follows deal with Germany
Arts and Entertainment
A spell in the sun: Emma Stone and Colin Firth star in ‘Magic in the Moonlight’
filmReview: Magic In The Moonlight
News
ebooksAn unforgettable anthology of contemporary reportage
Sport
A 'Sir Alex Feguson' tattoo
football

Arts and Entertainment
Ben Whishaw is replacing Colin Firth as the voice of Paddington Bear
tv

Thriller is set in the secret world of British espionage

Life and Style
life

News
ScienceGallery: Otherwise known as 'the best damn photos of space you'll see till 2015'
Life and Style
fashion

Bomber jacket worn by Mary Berry sells out within an hour

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 Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Audit Manager Central Functions

To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...

Credit Risk Audit Manager

Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week