MARKET REPORT: Renishaw Profits Soar As Token Shortage Casts

Engineer Renishaw saw his profits soar as he took advantage of the growing demand for semiconductors.

The FTSE 250 Group manufactures encoders, precise measuring devices that are used by factory robots to make these highly sought-after computer chips, and dental and bone implants for the medical industry.

In a business update for the three months ending in late September, he said revenue jumped 35% to £ 157.8million while profits more than doubled to £ 41.7million sterling, compared to £ 18.3 million.

Renishaw said the spike in growth was due to “strong” demand from the semiconductor and electronics markets, a trend it expected to continue. He added that he was seeing record order levels and that alongside semiconductors, he expected demand for machine tools and measuring equipment to pick up.

Semiconductors are used in everything from cell phones to car brake sensors and power steering. However, a global shortage this year has caused many production lines to shut down.

Affected companies include Apple, which could cut production targets for its iPhone 13 due to the shortage, while French automaker Renault is expected to manufacture 300,000 fewer vehicles this year.

Stock Watch – Argo Blockchain

Bitcoin miner Argo Blockchain has soared after cryptocurrency prices hit an all-time high.

The company, which uses thousands of US and Canada-based computer processors to mine digital currency, was boosted 1.5%, or 2p, to 134p after bitcoin’s value hit a record 66 $ 974 on Wednesday, giving it a market cap of over $ 1.2 trillion.

Cryptocurrency was boosted by the strong launch of the first bitcoin exchange-traded fund (ETF) in the US market earlier this week, which many experts say will attract more money from investors to the market. crypto.

The business update was accompanied by a set of successful results for the entire year up to the end of June, in which he said annual profits soared 146% to £ 119.7million by then as companies increase their investments in the manufacture of electronic products.

Peel Hunt analysts said the outlook for the company was “bright” after the results, adding that speculation about a possible takeover of the company “would persist” despite the company abandoning a sale process in July. due to a lack of satisfactory offers.

Shares of Renishaw climbed 11.1 percent, or 515p, to 5155p following those strong numbers, valuing the stake of its 81-year-old co-founder, executive chairman and principal shareholder, David McMurtry, at 1.36 billion. of pounds sterling.

Meanwhile, its 83-year-old co-founder and vice-chairman John Deer has a stake worth £ 622.7million.

The FTSE 100 fell 0.45%, or 32.8 points, to 7,190.3 while the FTSE 250 fell 0.22%, or 49.62 points, to 22,917.05.

The resurgence of the Evergrande debt crisis in China has tarnished market sentiment as investors worried about the potential effects on the Chinese economy if the developer collapsed under the weight of its $ 221 billion debt. pound sterling.

British actions in the sights included miners, fearing that a slowdown in Chinese production could affect the country’s demand for raw materials such as coal and iron ore.

BHP Group fell 3.7%, or 74.6p, to 1928.4p while Rio Tinto lost 4.8%, or 236.5p, to 4649p and Glencore fell 2.5%, or 9 , 4p, at 368.55p.

Anglo American also fell 2.7%, to 75.5p, to 2762.5p after a mediocre production report in which it said copper production fell 6% in the three months to October due maintenance work at its Collahuasi mine in Chile.

However, the company also reported a 28 percent increase in diamond production as demand for sparkling stones rebounded in its major US and Chinese markets.

Greeting and gift card company Moonpig was brought back to earth, slipping 3.2%, or 11p, to 337.6p, after a number of its IPO investors sold around 30 million dollars. ‘group shares for £ 98million overnight.

The shares were sold for 328 pence each, a discount of almost 6% from Wednesday’s closing price.

Blue-chip analysis group Relx rose 1.6%, or 35p, to 2250p, as it highlighted revenue growth from its exhibition business as foreclosure restrictions eased.

Elsewhere, asset manager Legal & General climbed 1.9%, or 5.1p, to 279.9p after analysts at Jefferies upgraded the stock to “buy” to “hold”, saying the company was “in a league of its own” and had several “competitive advantages” through its alternative investment arm.

The target price has also been increased to 340p from 290p.