News Column

Icap falls on decline in broking volumes while CSR hit by downgrade

May 7, 2014

Nick Fletcher, theguardian.com



Icap has dropped more than 4% after the interdealer broker reported a dramatic drop in foreign exchange trading volumes in April.

Electronic broking volumes fell 47% to $68.5bn a day compared to last year, and 23% compared to March. The news has sent its shares 17p lower to 399.8p, making it the biggest faller in the FTSE 250 index.

Close behind is chipmaker CSR, down 20.5p at 542.5p. Following last week's news of a worse than expected outlook for the second quarter, analysts at RBC Capital Markets have cut their price target from 730p to 560p. They said:

CSR benefits from a strong position and good growth in voice and music. However, its other segments face challenges; the consumer decline is accelerating, automotive growth looks modest, and legacy is becoming less relevant (10% of 2014 sales). BT Smart sales are just beginning but CSR's reliance on voice and music remains a concern; however, on a now more reasonable multiple we retain our sector perform rating.

But set-top box maker Pace, which fell last week on worries about its revenues if two key US customers merged but recovered on Tuesday after a positive Barclays note, is on the way up again. It has added 10.8p to 363.7p on a positive update from competitor Arris. Analysts at Liberum said:

Arris, which is Pace's closest peer reported strong first quarter 2014 results last night and gave good guidance. Strong result and positive read across to Pace.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Guardian Web


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters