Market Movers: iPhone rumours boost Imagination, C&W drops as CEO resigns

Speculation that Apple could launch a low-cost iPhone drive Imagination Technologies (IMG.L) shares but Cable & Wireless (CW.L) slumps after its chief executive steps down.  

Rumours that Apple could launch a low cost iPhone are believed to be behind a share price rise for Imagination Technologies (IMG.L).

The company gained 4.4%, or 15.9p, to 375.9p, a small gain compared to last week's dramatic falls from the 480p the company had traded at throughout most of June, but the first significant move up for a couple of days.  

Last week's falls started on 22 June when Imagination published its final results. These missed expectations and sparked a sell-off which saw its shares drop to a 346p low on 23 June to settle around 360p.
  
One analyst who did not want to be named said that today’s gains were likely to be due to speculation about Apple developing a low-cost iPhone which would see an increased need for Imagination’s products. The views of analysts in the sector differ over the likelihood of Apple targeting mid to low range market for iPhones.

PV Crystalox  (PVCS.L)  shares fell nealy 40%, or 17p, to 27p after warning its ability to pay a dividend could be threatened if the second half of the year turns in an operating loss. The company has suffered from weaker-than-expected sles in its PV (photovoltaic) market.  

Cable & Wireless (CW.L) dropped 16.4%, or 8.55p, to 43.7p after chief executive Jim Marsh resigned after warning that dividends would be halved in response to a continued decline in sales. Chairman John Pluthero is assuming Marsh's executive responsibilities.

On the main FTSE 100 index Severn Trent  (SVT.L) benefited from takeover interest in Northumbrian Water (NWG)  with analysts at Evolution Securities raising their recommendation for Severn Trent to ‘add’ from ‘neutral’. Its shares gained 3% or 43p to 1458p.

Losers included Resolution (RSL.L). In early trading its shares fell as much as  2.5% after being downgraded by Goldman Sachs analysts to ‘sell’ from ‘neutral’ but had recovered, dropping 0.62% from yesterday’s 288p closing price to trade at 286p.

Tate & Lyle (TATE.L) fell 2.8%, or 17.5p, to 612p after analysts at RBC downgraded shares in the sugar and sweeteners group to ‘hold’ from ‘buy’ after their strong run in the first half.