Cambridge Index gains 4.4%

ARM Holdings, up 5.8%, announced that Fujitsu Semiconductor has licensed its big.LITTLE and Mali-T624 technologies. ARM also benefitted from a positive broker upgrade from UBS which highlighted many positives for the company, including its ability to penetrate new areas such as networking & microcontrollers and to benefit from low end smart-phone adoption.

Johnson Matthey, up 5.1%, had its rating upgraded to “Under-weight” from “Neutral” by Morgan Stanley. Morgan Stanley also increased its target price from 2200p to 2570p. HSBC Holdings reiterated the stock as “Neutral”, while increasing the target price from 2300p to 2825p.

Greene King, up 4.6%, was assigned a “Buy” rating by Beaufort Securities. AVEVA Group, up 1.2%, was subjected to mixed broker ratings, with Citigroup advising investors to buy the stock, while Sanlam Securities reaffirmed its “Hold” rating. Sanlam Securities also cut the target price to 2,325p.

DS Smith fell 2%, however Brokers, Citigroup and Investec reiterated their “Buy” rating on the stock, while Goldman Sachs and Davy Research rated the stock as “Neutral” and “Underperform”, respectively.
 
Sareum Holdings jumped 16.7% to emerge as the top gainer in the Cambridge Index. Kier Group, up 10.7%, announced that it has disposed of certain properties located at Bell Green Retail Park in Sydenham, London to Kier Sydenham LP for £46m. The company also revealed approval from the High Court of Justice in England & Wales of its proposed acquisition of May Gurney Integrated Services. CSR, up 8.8%, noted that it would publish its 2Q and 1H results on 25 July 2013. Brady, up 1.4%, announced a new contract win from Rusal Marketing.

Cyan Holdings fell 12.5% to emerge as the top faller in the Cambridge Index. The company’s Executive Chairman, John Cronin, purchased shares through the exercise of 7,328,571 warrants at a price of 0.5p per share, increasing his shareholding to 1.91%.

PDX, down 7.5%, announced that it has entered into a conditional agreement to sell its UK subsidiary Pursuit Marine Drive Limited to Cellulac Limited in a deal worth £1.0m. The board also stated that it is in advance-stage negotiations in relation to an acquisition, which might constitute a reverse takeover. 1Spatial fell 6.2% during the week. The company announced that its full year revenues more than doubled to £12.1m from £5.2m while pre-tax loss widened to £4.7m from £1.6m.

In the UK, the FTSE 100 index rose 2.6%, to 6,375.5, after the Bank of England’s newly elected Governor, Mark Carney, reiterated his predecessor’s stance and kept monetary policy unchanged.  Further to this he also ruled out the possibility of any interest rate hike in near future.

Investor sentiment also improved after data showed that UK manufacturing PMI jumped to a 25-month high in June. The FTSE techMARK 100 Index rallied 3.5% to 2,800.4, while the FTSE AIM 100 Index increased 2.7% to 3,248.3.

US markets advanced during the week, as investors turned their attention towards improvement in US economic growth, following a slew of upbeat economic data. The DJIA index rose 1.5% to 15,135.8, while the NASDAQ index advanced 2.2% to 3,479.4.


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