Cambridge Index gains 8.2%

Global equities rebounded from last week’s losses, amid mounting speculation that global central banks would maintain their stance on stimulus measures. The Cambridge Index surged 8.2% or 1148.0 points to 15174.7, as nine of the top ten index heavyweights posted strong gains.

ARM Holdings, the largest weighting in the index, advanced 12.2% during the week, after it reported first quarter revenues of £170.3m, up 28%, and a 44% rise in its profit before tax, to £89.4m.

DS Smith, up 13.0%, reported that it expects operating profit to be in line with expectations and earnings per share to be towards the higher end of expectations. The company anticipates revenues to be around £3.7bn, and stated that it has achieved higher-than-expected cost synergies of around £40m, as the integration of SCA Packaging progresses.

Aveva Group, up 6.2%, announced that it has performed well in the second half of the year and stated that it anticipates its full year results to be in line with consensus forecasts.  The company announces its annual results on 23 May 2013.

Blinkx rose 19.3% and emerged as the top gainer in the Cambridge index. The company expects its full year results to exceed market expectations, with revenues of around $196m, and pre-tax net income of $15m. CSR rose 4.2%, even though Liberum Capital lowered its rating on shares from a “Buy” to a “Hold”. The broker increased its target price to 500.0p, up from 460.0p. 

Dialight, up 5.5%, announced that its ‘Industrial Lighting’ segment is performing well and that the performance of the ‘Components’ segment is in line with market expectations. However, the company noted that its ‘Signals’ segment lagged the first half of 2012.

1Spatial PLC fell 14.5%, and emerged as the largest faller in the Cambridge Index. Kier Group, down 5.3%, announced that it has agreed to acquire May Gurney Integrated Services Plc in a cash and shares deal worth £221 million and stated that its trading is on course and would meet the expectations for the current fiscal year.

Ubisense, down 0.2%, announced that it has been awarded a three year contract worth $6.8 million by GE to provide location services as part of a major new engagement. Sareum Holdings remained unchanged at 1.0p. The company received a grant worth up to £150,000 from the Biomedical Catalyst, for its Fatty Acid Synthase research programme.

In the UK, the FTSE 100 index rose 2.2% to 6,426.4, for the week ended 26 April 2013, as better than expected UK GDP data, encouraging UK corporate earnings updates and hopes of an interest rate cut in the Eurozone, boosted investors’ optimism. The FTSE techMARK 100 Index added 2.9% to 2,748.0, and the FTSE AIM 100 Index rose 0.4% to 3,186.5.

US markets advanced during the week, following upbeat US corporate earnings reports and amid better than expected initial jobless claims. Markets also found support from optimism that the Fed would continue its bond-buying programme to support the country’s economy after US GDP expanded at a lower than expected pace in the first quarter. The Dow Jones Index advanced 1.1% to 14,712.6, while the Nasdaq Index rose 2.3% to 3,279.3.



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