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FTSE Movers: ARM climbs after Intel results; DS Smith jumps
Chip designer ARM Holdings (ARM.L) led the FTSE 100 higher following upbeat results from Intel and IBM, while packaging firm DS Smith (SMDS.L) jumped on a strong trading statement.
Markets
Chip designer ARM Holdings (ARM.L) led the FTSE 100 higher on Wednesday, following upbeat results from US technology giants Intel and IBM, while packaging firm DS Smith (SMDS.L) jumped on a strong trading statement.
ARM shares, which have risen 142% in the last year, added 25p to £6.00 after Intel forecast second-quarter sales above market expectations and IBM boosted its full-year profit forecast.
The US firms’ results boosted tech stocks globally, including South Korea’s Samsung Electronics and Germany’s Infineon.
Miners go north
Miners dominated the leader board on the UK benchmark index of blue-chip shares, on the back of gains in Asian stock markets and on Wall Street.
Antofagasta (ANTO.L) took on 42p to £13.59, Rio Tinto (RIO.L) climbed £1.05 to £43.35 and Anglo American (AAL.L) rose 74p to £31.27.
Xstrata (XTA.L) was the third biggest riser on the FTSE 100, gaining 44p to £15.02, as it announced an agreement with Texas-based oil and gas firm Exco Resources to acquire copper tenements in Queensland, Australia, in order to expand its Ernest Henry Mining operation.
Meanwhile, Vedanta Resources (VED.L) improved 58p to £23.25 after buying a 10.4% stake in Cairn India, the oil and gas company, from Malaysia’s Petronas.
Resolution slides
Insurance consolidator Resolution (RSL.L) was the biggest faller on the index, dropping 7p to £2.86 after it went ex-dividend and traded without a payout attraction.
Publisher Reed Elsevier (REL.L) and defence firm BAE Systems (BAES.L) also eased 9p to £5.29 and 3p to £3.24 respectively after going ex-dividend.
DS Smith is encouraged
Among midcap stocks, DS Smith surged 14p, or 7%, to £2.11 after saying overall trading continued to be ‘encouraging,’ with further strong volume growth driven by the firm’s focus on the resilient fast-moving consumer goods sector.
In a statement, DS Smith said it expected to continue to make further progress towards its financial objectives: sales volume growth over 3%, return on sales between 6% and 8% and return on average capital employed between 12% and 15%.
Harry Philips, analyst at Evolution Securities, pointed out that the momentum described in the statement was ‘simply not reflected in the valuation,’ particularly when this was underpinned by the execution of a strategic review, which would add a further growth dimension to the stock. He added: ‘This is an excellent entry point into a strong growth opportunity.’
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- ARM Holdings PLC (ARM.L)
- DS Smith PLC (SMDS.L)
- Antofagasta Plc (ANTO.L)
- Rio Tinto PLC (RIO.L)
- Anglo American PLC (AAL.L)
- Xstrata PLC (XTA.L)
- Vedanta Resources PLC (VED.L)
- Resolution Ltd (RSL.L)
- Reed Elsevier PLC (REL.L)
- BAE Systems plc (BAES.L)
- Home Retail Group plc (HOME.L)
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