Cambridge Index falls 0.6%

The Cambridge Index fell for the second consecutive week, dropping 0.6% or 98.78 points, to 15,411, following losses in all of its top five index heavyweights, despite a number of brokers giving positive recommendations.

ARM Holdings fell 0.6% despite a favourable broker review. Jefferies upgraded the stock to “Buy” citing that ARM’s business is well-positioned for the mid-to-long term, and predicted earnings growth to sustain at ease through 2013-2016. Johnson Matthey, down 0.4%, had its “Buy” rating retained by Bank of America Merrill Lynch. The broker also rated DS Smith, down 0.7% as “Buy” while increasing the target price to 310p. Greene King, down 3.2%, was rated as a “Buy” by Deutsche Bank. AVEVA Group, down 1.6%, was assigned an “Overweight” rating by Morgan Stanley.

LPA Group gained 13.9%, the largest increase in the Cambridge Index. Dialight, up 7.0%, revealed a UL and CE compliance certification for its DuroSite LED High Bay and Low Bay product portfolios. Ubisense Group, up 6.4%, won a €2.0 million order from a large European telecoms network operator. Sepura, up 5.4%, announced that its CEO, Gordon Watling and CFO, Steve Chamberlain have acquired 674 and 412 ordinary shares in the company, respectively, at 140.5p per share. Bango, up 4.9%, plans to release its results for the six months ended 30 June 2013 on 17 September 2013. Netcall, up 2.4%, anticipates its full-year adjusted EBITDA, to be in line with the market expectations. Quixant, up 2.1%, will issue its results for the six months ended 30 June 2013 on 10 September 2013. Domino Printing Sciences, up 1.6%, granted its Executive Director, Andrew Herbert, options to purchase 1,044 shares in the company at an exercise price of 517p per share.

Gaming Realms fell 13.5%, which was the largest fall this week in the Cambridge Index, however last week we reported it as the largest gainer and the price is at similar levels to the price that it was two weeks ago. Sareum Holdings, down 3.1%, expects its results for the year ended 30 June 2013 to be slightly ahead of market expectations, with projected post-tax annual loss of about £0.54m. Blinkx, down 2.8%, launched an initiative to create original online videos and commenced four unique channels on its website. Elektron Technology, down 2.1%, sold its holding in Versarien for a total net price of about £0.77m. Cambridge Cognition Holdings, down 1.2%, appointed Nick Kerton as the CEO and Nick Walters as the CFO, with immediate effect.

In the UK, the FTSE 100 index declined 1.3% to 6,500 over the week, as minutes from Bank of England’s latest policy meeting highlighted some descent among policy makers on Governor Mark Carney’s new policy on forward guidance. However, gains in the nation’s mining sector kept the losses in check. The FTSE techMARK 100 Index fell 0.6% to 2,921.9, while the FTSE AIM 100 Index edged up 0.8% to 3,427.5.

US markets fell during the week, as the latest batch of dismal US economic data spurred fresh uncertainty over Fed’s pace of stimulus measures. Negative sentiment was also fuelled after corporate heavyweights, including Cisco Systems and Wal-Mart Stores, issued sales projections below analysts’ estimates. The Dow Jones Index reduced 2.2% to 15,081.5, while the Nasdaq Index declined 1.6% to 3,602.8.

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