Shares in ARM Holdings rocket, oil and steel-related stocks fall

18th Jul 2016 17:22

(ShareCast News) - Cyclicals paced gains on the FTSE 350, with technology shares easily the best performers as shares of ARM Holdings rocketed on the back of a £23bn-pound all-cash offer from Japan's SoftBank.In remarks to the BBC, ARM's founder Hermann Hauser said Monday was "a sad day for technology in Britain".According to Hauser, it was a "British company that determined the next generation microprocessor architecture, that is going to be used in all the next generation phones and - more importantly - in the next generation of the internet of things".Possibly so, but according to analysts the deal price was favourable and the transaction was likely to close.Indeed, for analysts at Kepler Chervreux the offer for the chip designer, which valued it at 17 times' forward sales, appeared "rich".To take note of, for many observers it marked just the tip of the iceberg in terms of the deal-flow which was likely to ensue in the wake of the recent weakening in Sterling.Software&Computer services advanced in the wake of the news, which pushed the Stoxx 600's gauge of technology shares 3.58% higher and even gave the pound a lift on foreign exchange markets.Other cyclical sectors such as non-life insurance, real estate investment and chemicals also did well.Acting as a backdrop, strategists at JP Morgan on Monday recommended that clients 'rotae' into cyclicals in anticipation that they would continue to outperform 'defensives', although that outperformance would likely last between one and two months at a maximum.Commodity-related issues take a hitIndustrials metals and mining led to the downside, as shares in Evraz were knocked lower as Shangai rebar and Dalian-traded iron ore futures fell by their daily 6% limit as investors cashed out following the previous week's gains.Other defensive sectors such fixed line telecommunications and tobacco were also lower.Oil and gas producers tracked losses in energy futures, with front month Brent crude futures lower by 1.601% at $46.85 per barrel on the ICE as of 18:26 BST.Producers upped their bearish positions in financial derivatives on the oil price for a third week running, increasing them by 8,556 futures and options or 1.6%, according to data from the US Commodity Futures Trading Commission, Bloomberg reported.Top performing sectors so far todayTechnology Hardware & Equipment 2,000.90 +38.98%Software & Computer Services 1,851.57 +2.01%Insurance (non-life) 2,581.37 +1.65%Real Estate Investment & Services 2,410.63 +1.55%Chemicals 11,855.11 +1.46%Bottom performing sectors so far todayIndustrial Metals & Mining 1,599.43 -1.40%Fixed Line Telecommunications 4,504.15 -1.23%Mobile Telecommunications 5,085.60 -0.97%Oil & Gas Producers 7,637.19 -0.92%Tobacco 56,058.07 -0.72%