Market Report: Buzz in the semi-conductor world, but mining majors suffered

Brokers love bid chatter and Liberum Capital did its very best to talk up the prospect of chip maker Imagination Technologies becoming the next big UK takeover.

Its report couldn’t have been better timed, released hours before Intel’s £11bn buy of smaller rival Altera was unveiled. Just a week earlier, Avago Technologies, agreed to splash out £24bn on US rival Broadcom in the sector’s biggest ever deal.

Imagination, which creates the chips that power Apple’s iPhones and iPads, leapt 14.5p to 233.7p. Liberum analysts said they see the FTSE 250 company as a genuine acquisition target after Intel dumped its stake earlier in the year, touting several American names as potential buyers.

Aside from the buzz of the semi-conductor world, mining majors suffered as China’s manufacturing data disappointed. Glencore, down 6.2p at 281.75p, saw more than £800m wiped off its market value, while Anglo American joined it on the Footsie’s losers’ list, falling 23p to 1,003p. Both played a part in the FTSE 100’s failure to break the 7,000 barrier as the UK’s premier share index closed 30.85 points lower at 6,953.58.

Rumours circulated about a possible debt deal for Greece, but hopes proved shortlived and stocks quickly lost any ground gained in afternoon trading.

Investors dialled in to Dixons Carphone, up 9.3p to 484.7p, ahead of what analysts are saying will be a bullish fourth-quarter trading update tomorrow.

City scribblers including Investec and Citigroup are pointing to a 5 per cent rise in like-for-like sales from the company behind Currys PC World and Carphone Warehouse.

Kurdish oil producer and former darling of the oil stock pickers Gulf Keystone Petroleum revealed it has finally found a new chief executive after a year-long search. The former Maersk Oil executive Jon Ferrier is expected to start selling off Keystone’s assets or the company entirely. But investors were unconvinced by the new appointment and sent the shares down 0.75p to 36.75p.

On AIM, Real Good Food jumped 4p to 47.5p as it served up a bullish annual update after selling its wholesale sugar business for £34m. Profits hit £5.3m on sales of £104m.