Cambridge Index gains 4.3%

Global equity markets rose during the week, helped by China’s move to cut interest rates and on hopes that Spain might ask the EU for banking aid. The Cambridge Index rallied 4.3% or 409.1 points to 9,981.7, with all of the top ten index heavyweight stocks recording healthy gains.

ARM Holdings, up 1.3%, stated that the company aims to garner 5% to 10% share in global server chip market by 2016, adding that it was optimistic over the growth in PC markets, following Microsoft’s release of the next-generation Windows 8 operating system that supported ARM based processors. Meanwhile, UBS retained its rating on the stock at “Neutral”, while Galvan Research reiterated its “Buy” rating.

Johnson Matthey rose 10.9% and emerged as the top gainer in the Cambridge Index, following upbeat results and positive reviews from various brokers. Full year revenue rose 20% to £12,023 million and pre-tax profits rose 58% to £426.0 million. The board also declared a special dividend of 100p per share, in addition to the full-year dividend of 55p.

Dialight, up 5.9%, announced that its US subsidiary, Dialight Corp., has acquired the assets of Airinet for $2.6 million, to expand energy-saving technology operations in the US. Other noticeable gainers were DS Smith, Kier Group and PDX, all up between 5.4% and 7.8%.

CSR, up 4.7%, announced that it has acquired MAP-X audio product line from Trident Microsystems for about $1 million, to expand its audio portfolio. Bango, up 2.3%, noted that Facebook has started the deployment of its payment services technology. Bango is due to release its annual result on 25 June. Cyan Holdings, unchanged at 0.5p, announced that three more Cyan partners have also received requests from Tamil Nadu Electricity Board to install 500 unit pilots within the next 25 days.

Domino Printing Sciences, up 3.7%, announced that it has acquired the remaining 80.65% stake in Graph-Tech AG in a deal worth about £12.4 million, with additional contingent consideration up to £6.7 million. Netcall, up 3.0%, announced that it has received Payment Application Data Security Standard (PA-DSS) accreditation for its automated telephony payment solution “Netcall Payments”.

Xaar fell 6.0% and emerged as the largest faller in the Cambridge Index. Blinkx down, 2.5%, announced the release of blinkx app on Popcorn Hour and PopBox, the Internet TV platforms from Syabas Technology. Blinkx mentioned that the app would allow customers to search, discover and watch high quality videos from its extensive index of professionally produced content. Other prominent losers included HiWave Technologies, Sagentia Group and Sareum Holdings, all down between 3.7% and 5.6%.

In the UK, the FTSE 100 index closed 3.3% higher, at 5,435.1, following the Bank of England’s and ECB’s decisions to maintain their interest rates at a record low level. Speculation that Spain might ask the European Union for aid over the weekend also lifted market sentiment. The FTSE techMARK 100 Index gained 2.6% to 2,194.6, while the FTSE AIM 100 Index rose 1.0% to 3,090.4.

US markets rose during the week, after reports showed that US service sector activity increased unexpectedly in May and US jobless claims dropped more-than-expected during the previous week. The Dow Jones Index rose 3.6% to 12,554.2, while the Nasdaq Index climbed 4.0% to 2,858.4.

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