Cambridge Index

Cambridge Index rises 1.2%

The Cambridge Index rose 1.2% or 178.5 points to 15,398.4, as six out of the top ten index heavyweights posted weekly gains. In its AGM trading update, Johnson Matthey, up 4.3%, stated that its construction and services order books increased to £6.3 billion compared to £6.2 billion in June. The company also indicated that it was on track to achieve its target for the current fiscal year following contract wins for its construction division in Scotland and projected its net debt position to improve in the latter half of the year. Westhouse Securities reaffirmed its “Buy” rating on the stock with a price objective of 2,110p. Jefferies Group reiterated their “Hold” rating on DS Smith, up 2.3%. Goodbody Stockbrokers initiated coverage on Greene King, up 0.6%, with a “Buy” rating and with a price objective of 945p. HSBC reduced its price objective on the stock to 890p from 950p.
Amino Technologies, up 11.1%, announced that it had won a new contract from Turkcell Superonline, a wholly owned subsidiary of Turkish telecoms company Turkcell, to offer its Live Advanced Media Platform for the rollout of IPTV services. Aveva Group’s share price rose 8.6%, despite announcing that its profit after tax for the six months ended 30 September 2014, declined to £10.7 million from £19.8 million reported in the same period last year and operating profit declined almost 50% to £13.9 million from £26.7 million. Revenues for the period also declined to £85.9 million from £108.5 million. Tristel, up 3.2%, announced that a New Zealand study has demonstrated the productivity and costs benefits achieved through the introduction of the Tristel Wipes System for use on nasendoscopes in Ear Nose and Throat out-patient clinics, compared to a centralized decontamination process. Jefferies Group reaffirmed its “Buy” rating on Domino Printing Sciences, up 1.8%. CSR, up 0.3%, reported a 16% decline in third quarter revenue to $212.2 million from $252.1 million. The net profit rose to $34.4 million from $25.3 million reported in the same period last year.
Canaccord Genuity raised its price objective on Vernalis, down 2%, to 66p from 56p. Blinkx, down 9.8%, swung to a net loss of £11.9 million for the six months ended 30 September 2014 from a profit of £7.8 million reported last year. Also, it posted a pre-tax loss of $9.7 million compared to last year's profit of $10.8 million. Revenue declined to $106 million from $111.6 million reported in the same period prior year. Numis Securities downgraded its rating on the stock to “Add” from “Buy” with a price objective of 33p. However, Citigroup reissued its “Buy” rating on the stock.
UK markets finished mostly higher in the week, as a dovish inflation report by the Bank of England hinted that the UK central bank might not raise interest rates until late 2015. The FTSE 100 index advanced 1.3% to 6,654.4, while the FTSE techMARK 100 Index rose 1.9% to 3,246.8. However, the FTSE AIM 100 Index retreated 1.1% to finish at 3,133.5.
US markets closed higher in the week, following buoyant earnings from major US bellwethers. The DJIA index added 0.3% to settle at 17,634.7, while the NASDAQ Index gained 1.2% to end at 4,688.5.

Research and analysis for these reports has been conducted by Decimal Point Analytics Pvt. Ltd. on behalf of NW Brown Group.


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Index movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, soared 11.1% to 120.0p. The company announced that it has bagged a new contract from Turkcell Superonline, Turkey's innovative telecom operator and a wholly owned subsidiary of Turkcell, to offer its Live Advanced Media Platform for the rollout of IPTV services.

Aveva Group PLC

Engineering technology company, Aveva Group PLC, jumped 8.6% to 1515.0p. The company, in its results for the six months ended 30 September 2014, announced that its profit after tax declined to £10.7 million from £19.8 million reported in the same period last year. Operating profit declined almost 50% to £13.9 million from £26.7 million reported in 2013. Revenues for the period declined to £85.9 million from £108.5 million. Barclays upgraded the company’s shares to an “Overweight” rating from an “Equalweight” rating. Credit Suisse also reiterated its “Outperform” rating while Westhouse Securities reaffirmed its “Add” rating on the company’s shares. Additionally, Jefferies Group reiterated its “Buy” rating on the company’s shares.

Blinkx PLC

Blinkx PLC, the leading video search engine, fell 9.8% to 25.3p and emerged as the top loser in the Cambridge Index. The company swung to a net loss of £11.9 million for the six months ended 30 September 2014 from a profit of £7.8 million reported last year. Also, it posted a pre-tax loss of $9.7 million compared to last year's profit of $10.8 million. Revenue declined to $106.0 million from $111.6 million reported in the same period prior year. Numis Securities downgraded its rating on the stock to “Add” from “Buy” with a price objective of 33.0p. However, Citigroup reissued its “Buy” rating on the stock.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, dropped 3.1% to 818.5p.

Horizon Discovery Group PLC

Horizon Discovery Group PLC, the life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines, declined 3.9% to 147.5p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, advanced 4.3% to 3147.0p. In its AGM trading update, the company stated that its construction and services order books has increased to £6.3 billion compared to £6.2 billion in June. The company has indicated that it was on path to achieve its target for the current fiscal year following contract wins for its construction division in Scotland. Also, the company expects its net debt position to improve in the latter half of the year. Westhouse Securities reaffirmed its “Buy” rating on the stock with a price objective of 2,110.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, jumped 7.1% to 0.5p.

Scientific Digital Imaging PLC

Scientific Digital Imaging PLC, a digital imaging technology company, surged 24.4% to 14.0p and emerged as the top gainer in the Cambridge Index.

Sphere Medical Holding PLC

Sphere Medical Holding PLC, a leading developer of innovative monitoring and diagnostic devices for the critical care setting, fell 3.5% to 27.5p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, slumped 5.1% to 139.0p.

Other movers

CSR PLC

CSR PLC, engaged in designing single-chip wireless devices, rose 0.3% to 831.5p. In its results for the third quarter ended 26 September 2014, CSR reported a 16% decline in its revenue to $212.2 million from $252.1 million. The net profit for the period rose to $34.4 million from $25.3 million reported in the same period last year. Liberum Capital and Numis Securities reaffirmed their “Hold” rating on the stock. N+1 Singer reissued its “Hold” rating on the company’s shares. Barclays reiterated its “Equalweight” rating on the stock.

Domino Printing Sciences PLC

Domino Printing Sciences PLC, a provider of ink jet and laser technologies, climbed 1.8% to 631.0p. Jefferies Group reaffirmed its “Buy” rating on the stock.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, edged 2.3% higher to 284.7p. Jefferies Group reiterated its “Hold” rating on the stock.

Greene King PLC

Shares of pub operator, Greene King PLC, rose 0.6% to 791.5p. Goodbody Stockbrokers initiated coverage on the stock with a “Buy” rating with a price objective of 945.0p. HSBC reduced its price objective on the stock to 890.0p from 950.0p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, climbed 3.2% to 80.5p. The company announced that a New Zealand study has demonstrated the productivity and costs benefits achieved through the introduction of the Tristel Wipes System for use on nasendoscopes in Ear Nose and Throat out-patient clinics, compared to a centralized decontamination process. FinnCap restated its “Corporate” rating on the stock.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, retreated 2.0% to 49.8p. Canaccord Genuity raised its price objective on the company’s shares to 66.0p from 56.0p.

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