Cambridge Index declines 3.5%

The Cambridge Index dropped 3.5% or 667.5 points to 18,301.0, as seven of the top ten index heavyweights posted weekly losses.

 

Sanford C. Bernstein maintained its “Market Perform” rating on ARM Holdings, down 5.7%, with a target price of 1000.0p. Numis Securities restated its “Buy” rating on the stock with a target price of 1350.0p.

Zacks upgraded its rating on Johnson Matthey, up 2.8%, to “Hold” from “Sell”. BNP Paribas maintained its “Neutral” rating on the stock with a target price of 3300.0p. Domino Printing Sciences, down 0.4%, announced that its reported merger with Brother Industries has received approval from USA’s Federal Trade Commission and the Department of Justice.

Vernalis, up 22.4%, indicated that the US Food and Drug Administration has approved the new drug application made for the ‘Tuzistra XR’ extended release oral suspension to be used for the treatment for coughs and symptoms related to common cold. Stifel Nicolaus and Canaccord Genuity increased its target price on the company’s shares while maintaining their “Buy” recommendation.

Elektron Technology, up 15.8%, in its FY15 results, announced that its revenues dropped to £44.4m from £46.3m recorded last year, while profit after tax stood at £0.2m, compared to a loss of £6.7m. The company’s basic and diluted earnings per share from continuing and discontinued operations stood at 0.1p, compared to a loss of 6.4p posted in 2014.

Sepura, up 8.6%, announced that it has entered into a conditional agreement to buy the entire issued share capital of Teltronic SAU for a consideration of €127.5m. The company stated that it would suspend its existing share repurchase programme and fund the deal by placing new equity and debt. N+1 Singer reiterated its “Corporate” rating on Xaar, up 0.9%.

Kier Group, down 0.4%, announced that it has entered into a conditional agreement to acquire Mouchel for a cash consideration of £265.0m. It stated that it would raise funds for the deal via a £340.0m rights issue. Liberum Capital reduced its target price on the stock to 1650.0p from 1710.0p and maintained its “Hold” rating on the stock.

Horizon Discovery Group, down 2.3%, indicated that it has raised £25.0m via share placing programme, in its effort to support its expansion strategy. Brady, down 3.0%, stated that its trading in 2015 is at par with market forecasts so far. It indicated that trading in its energy business is gathering momentum after it signed two agreements in its energy data management unit. It also stated that its recycling business has installed software from a deal with a US recycling company signed at the end of 2014 and has recognised revenue from the deal.

Ubisense Group fell 15.0%, following a revenue warning. In its 1Q15 trading update, the company stated that two contract delays in the automotive segment would mean that contract additions in its 2Q15 will drop below its expectations, thereby hinting that revenue for its solutions business for 1H 2015 will be at par with the corresponding period previous year.

UK markets ended lower in the earlier week, as concerns of sluggish global economic growth dented investor sentiment. The FTSE 100 index declined 1.2% to 6,986.0, while the FTSE AIM 100 Index eased 0.8% to finish at 3,405.2. Also, the FTSE techMARK 100 Index fell 2.2% to finish at 3,856.3.

US markets closed down last week, after data showed that the US economy grew at a slower-than-forecast pace in the first quarter. Also, at the FOMC meeting, there was lack of clarity over the timing of interest rate hike. The DJIA index retreated 0.3% to 18,024.1, while the NASDAQ Index dropped 1.7% to 5,005.4.

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