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Apple effect boost iPad chip maker Arm

US gadget-maker’s stellar numbers revive speculation of potential takeover of UK firm

The Apple effect shows no sign of wearing off – which is excellent news for component manufacturer Arm Holdings.

The UK group was one of the top FTSE risers in early trading this morning – and it didn’t even have to utter a word to achieve the bounce. Instead, all the talking was done last night by executives in Cupertino, California, where Apple smashed Wall Street expectations with a set of stellar earnings, which have now boosted the shares in the London-listed company which makes the mobile chips in the iPad.

Apple has 0bn of cash sitting in its coffers, which will likely renew speculation that it might try to acquire a few of its suppliers. Even if that theory proves nonsense, traders reckon that Apple’s numbers will translate to plenty of business for Arm, whose shares rose 3.7% to 601.13p

Meanwhile, the old saying that it takes two views to make a market looks apposite in the case of Ashmore, which topped the FTSE 100 leader board in early trading after a poor day on Tuesday.

Its shares rose by 6.6% to 378.3p after Barclays Capital upgraded the stock to “overweight” from “equal weight”, citing an improving performance at the group’s emerging market debt fund at a difficult time for the sector. The positive take came after a downgrade yesterday by RBS, which hit the shares by 2%.

Against a “pessimistic backdrop” for the industry, due to deteriorating retail confidence in the UK and Europe, BarCap says it prefers emerging-market focused Ashmore, among UK-listed asset managers.

The bank is cautious on the British asset management sector, flagging “strong equity redemptions” in the UK and high outflows in Europe, while reiterating its “underweight” stance on Schroders and Henderson, which focus on the retail segment.

BarCap also downgraded Aberdeen to “equal weight” from “overweight” due to strong share outperformance last year and weaker-than-expected flows. Shares in the Scottish-based asset managers fall 0.8%.

In the wider market the FTSE 100 was treading water, down 0.2% at 5740.4. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds