News Column

FTSE falters on weak mining sector but chipmaker CSR soars on $3bn sale hopes

August 28, 2014

Nick Fletcher, theguardian.com



Weakness in mining shares has dragged down the market after recent rises, but technology company CSR is soaring on talk of a possible sale.

The company, whose chip designs are used in products such as mobile phones and bluetooth headsets, has jumped 141p or 25% to 716p following a report it was exploring a sale after being approached by several semiconductor companies.

Any deal could value it at around $3bn, said the Financial Times, which is nearly double its current market valuation.

Overall though the mood in the market is more subdued, with the FTSE 100 down 19.38 points at 6811.28. The mining sector has come under pressure following a fall in iron ore prices in China, a key consumer of metals.

So Rio Tinto is down 110.5p at 32.25 while Anglo American is 47p lower at 15.21 and BHP Billiton has lost 40.5p to 19.05.

But building supplies group CRH has climbed 27p to 14.25 after Credit Suisse raised its recommendation from underperform to outperform.

Morrisons is up 2.8p at 187.2p as Deutsche Bank moved from sell to hold, amid hopes that despite lower sales in Wednesday's latest market share figures from Kantar Worldpanel, the supermarket group might be turning the corner.

One of the day's big fallers is inkjet specialist Xaar, down 121.5p or 22% at 438.5p after it cut its revenue forecast from the 130m it expected last month to between 115m and 125m. It blamed weaker demand from the ceramic tile sector, linked to a slowdown in construction activity in China. The company has already issued one warning in June.


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Source: Guardian Web


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