Market Report: Talk proves costly for Arm Holdings

The City decreed that the smartphone microchip maker Arm Holdings was looking a bit pricey and punters quickly followed by hanging up on the Cambridge-based tech group – knocking more than 3 per cent off its price in the process.

Analysts at Liberum Capital and Société Générale both issued sell notes on the stock, raising concerns of slowing growth in the smartphone market.

Nobody is claiming the Cambridge tech star is in trouble, merely that its shares are perhaps not representative of the outlook for growth. The shares have advanced 71 per cent in the past year but recorded a 10 per cent fall in the past month.

Société Générale warned that the "two leading smartphone makers, Apple and Samsung, showed slowing growth trends" which will limit Arm's first-quarter prospects. They gave the stock a 640p price target while Liberum's scribblers are concerned that US giant Intel is gaining share in Arm's key royalty markets – smartphones and tablets. They gave the stock a 725p price target.

SocGen and Liberum are the only two analyst bears currently, ahead of its first-quarter update next week. Eleven analysts rate the stock a hold, with 10 rating it outperform. The shares fell 28.5p – or 3 per cent – to 868p.

The pessimistic stance from investors in Arm was supplemented by fears of weak numbers from US rival Intel after Wall Street closed.

The FTSE 100 took another battering with banking and oil sectors suffering after the miners' turn the day before. With no prospect of any upbeat economic updates across the world, the markets remained in negative territory and the FTSE 100 declined 39.02 to 6304.58.

Investors saw opportunity in the mining sector following Monday's heavy sell-off and silver miner Fresnillo was top of the tree, up 81p to 1,161p.

News of the long awaited go ahead for the $32bn takeover of miner Xstrata, up 19.7p to 986p, by commodities giant Glencore, 4p better off at 325.1p, pushed both stocks ahead.

The supermarket chain Tesco was in focus ahead of its full-year results today. Since its well-documented problems, it has reinvested in the UK and shares have risen by more than 10 per cent since January. But despite this recovery, and expectations that it will confirm the exit from its ill-fated US operation, some analysts are still concerned.

Espirito Santo's shop watchers said that their latest survey results show Tesco is deteriorating, not improving, in the UK.

Espirito thinks the horse meat scandal played its part but there are also plenty of other problems facing the grocery behemoth. From "Brazil to Poland to China we have heard different retailers talk of declining footfall at hypermarkets", Espirito Santo said, adding that it does not see "this pressure lifting" any time soon.

Meanwhile, the retail expert Nick Bubb believes Tesco's problems in Europe and Asia are "plenty to keep the bears happy at this stage". Espirito rates the stock a sell with a 310p target price. The shares dipped 0.25p to 384.85p.

The luxury brand Burberry was dragged down by news that the French luxury group LVMH had reported just a 3 per cent rise in fashion and leather goods for the three months to April. It was the weakest quarterly rate since 2009 and below analyst expectations. Burberry, suffering ahead of it results today, stumbled 18p to 1,266p.

Over on AIM, the chairman of pig iron specialist Ironveld bought 1 million shares in the miner. The purchase by Giles Clarke, who is the founder of Majestic Wines and Pet City and chairman of the oil explorer Amerisur as well as the England and Wales Cricket Board, accompanied a share price rise of 0.5p to 5.5p.

The luxury furnishings group Walker Greenbank's full-year pre-tax profit edged up to £4.93m and sales were up 2.3 per cent to £75.7m but it declined 2p to 98.5p.

DiamondCorp updated on its Lace Mine project in South Africa. It confirmed it now has funding from US jeweller Tiffany & Co to take its Lace mine through to full development. But the shares were lacklustre, down 0.25p to 5p.

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: Mortgage Administration Team Leader

Negotiable: Recruitment Genius: This company prides itself on its ability to p...

Recruitment Genius: Mortgage Advisor

Negotiable: Recruitment Genius: This company prides itself on its ability to p...

Ashdown Group: Solvency II Project Manager - 10 month contract - £800 p/d

£800 per day: Ashdown Group: A highly successful, global financial services co...

SThree: Trainee Recruitment Consulant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250...

Day In a Page

A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

A Very British Coup, part two

New novel in pipeline as Jeremy Corbyn's rise inspires sequel
Philae lander data show comets could have brought 'building blocks of life' to Earth

Philae lander data show comets could have brought 'building blocks of life' to Earth

Icy dust layer holds organic compounds similar to those found in living organisms
Chinese web dissenters using coded language to dodge censorship filters and vent frustration at government

Are you a 50-center?

Decoding the Chinese web dissenters
The Beatles film Help, released 50 years ago, signalled the birth of the 'metrosexual' man

Help signalled birth of 'metrosexual' man

The Beatles' moptop haircuts and dandified fashion introduced a new style for the modern Englishman, says Martin King
Hollywood's new diet: Has LA stolen New York's crown as the ultimate foodie trend-setter?

Hollywood's new diet trends

Has LA stolen New York's crown as the ultimate foodie trend-setter?
6 best recipe files

6 best recipe files

Get organised like a Bake Off champion and put all your show-stopping recipes in one place
Mullah Omar, creator of the Taliban, is dead... for the fourth time

Mullah Omar, creator of the Taliban, is dead... again

I was once told that intelligence services declare their enemies dead to provoke them into popping up their heads and revealing their location, says Robert Fisk
Margaret Attwood on climate change: 'Time is running out for our fragile, Goldilocks planet'

Margaret Atwood on climate change

The author looks back on what she wrote about oil in 2009, and reflects on how the conversation has changed in a mere six years
New Dr Seuss manuscript discovered: What Pet Should I Get? goes on sale this week

New Dr Seuss manuscript discovered

What Pet Should I Get? goes on sale this week
Oculus Rift and the lonely cartoon hedgehog who could become the first ever virtual reality movie star

The cartoon hedgehog leading the way into a whole new reality

Virtual reality is the 'next chapter' of entertainment. Tim Walker gives it a try
Ants have unique ability to switch between individual and collective action, says study

Secrets of ants' teamwork revealed

The insects have an almost unique ability to switch between individual and collective action
Donovan interview: The singer is releasing a greatest hits album to mark his 50th year in folk

Donovan marks his 50th year in folk

The singer tells Nick Duerden about receiving death threats, why the world is 'mentally ill', and how he can write a song about anything, from ecology to crumpets
Let's Race simulator: Ultra-realistic technology recreates thrill of the Formula One circuit

Simulator recreates thrill of F1 circuit

Rory Buckeridge gets behind the wheel and explains how it works
Twitter accused of 'Facebookisation' over plans to overhaul reverse-chronological timeline

Twitter accused of 'Facebookisation'

Facebook exasperates its users by deciding which posts they can and can’t see. So why has Twitter announced plans to do the same?
Jane Birkin asks Hermès to rename bag - but what else could the fashion house call it?

Jane Birkin asks Hermès to rename bag

The star was shocked by a Peta investigation into the exotic skins trade