ARM Holdings, down 5.6% in its first quarter results ended 31 March 2016, announced that its revenues climbed 21.5% to £276.4m from £227.5m reported in the same period last year. Profit before tax rose to £112m from £103.4m. The company stated that it anticipates the full year dollar revenues to be in line with the expectations based on current market conditions in the semiconductor industry. The stock received mostly “Buy” rating from brokers.
Deutsche Bank reissued its “Buy” rating on Johnson Matthey, up 1.2%. Berenberg Bank reiterated its “Hold” rating on DS Smith, down 4.7%, with a target price of 375p. Barclays reissued its “Overweight” rating on Greene King, down 2.3%.
Horizon Discovery Group, up 7.6%, announced that it has appointed Numis Securities Limited and RBC Capital Markets as joint brokers with immediate effect. Numis has also been appointed as Nominated Adviser to the company.
AVEVA Group, up 3.9%, announced in its trading update for the year ended 31 March 2016, that the Board expects the Group revenues as well as adjusted profit before tax to be in line with its expectations. However, it stated that the adjusted profit before tax was hampered due to weakening of the US dollar in March. Recently, it implemented further cost saving initiatives for which a one-off exceptional cost of £4m was generated. The stock was subjected to mixed reviews from various brokers.
Amino Technologies, up 1.4%, announced that it has extended its collaboration with Vodafone Netherlands along with its systems integration partner, Divitel, to continue the rollout of enhanced IPTV devices for Vodafone's fibre and DSL-based TV services across the Netherlands.
Elektron Technology, unchanged at 5.8p, announced that shareholder Barrie Bridge's application for appeal against a ruling by a Liverpool court was refused by Lord Justice Kitchin, who stated that the appeal would not have a real prospect of success on any of the grounds put forward.
Vernalis, down 0.7%, announced that it has appointed Sandford Sommer as the President and Chief Operating Officer of Vernalis Therapeutics Inc, effective from 2nd May 2016.
UK markets finished lower in the previous week, after UK retail sales declined more than expected in March and following The Bank of England Governor, Mark Carney’s, warning that UK’s economic growth could slow if the nation votes to quit the European Union. The FTSE 100 index fell 0.5% to 6,310.4, while the FTSE AIM 100 Index dropped 0.8% to finish at 3,423.4. The FTSE techMARK 100 Index slid 2.2% to 3,797.2.
US markets closed mixed last week. Initial jobless claims in the US fell to its lowest level in almost 42 years, suggesting progress in nation’s labour market. However, Markit manufacturing PMI fell more than expected in April. The DJIA index edged 0.7% higher to 18,003.8, while the NASDAQ Index declined 0.6% to 4,906.2.
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