Sector movers: Tech hardware and equipment boost markets

Technology hardware and equipment stocks helped boost the London market on Wednesday, led by positive results from ARM Holdings.

The FTSE 100 ended 0.05% or 3.29 points higher at 6,348.42, while the FTSE 250 was 0.31% or 52.65 points higher at 17,036.68 after better-than-expected public finance figures. The UK’s headline public borrowing declined from an upwardly revised £11.6bn to £9.4bn in September, compared with analysts’ expectations for a £10.1bn reading, according to the Office for National Statistics.

Brent crude futures decreased 1.7% to $47.85 per barrel and West Texas Intermediate dipped 2.4% to $45.20 per barrel at 1520 BST. It followed data from the US Energy Information Administration that commercial crude inventories rose by eight million barrels last week to 476.6m barrels, soaring above expectations for an extra 3.9m barrels.

Base metals were mixed on the London Metal Exchange’s three-month futures including copper (0%), lead (-1%), tin (+0.2%), zinc (-2.3%), nickel (+0.3) and primary aluminium (-0.08%), causing the industrial metals sector to rise.

However, the mining sector dipped marginally on the back of news that Acacia is set to fall short of targets after a 'challenging' quarter. But while BHP Billiton saw a drop in petroleum and copper production in the three months to 30 September, it said it’s on track to hit full year guidance.

ARM Holdings drove the technology hardware and equipment sector after the chip designer posted a 27% jump in third-quarter pre-tax profit to £128.4m. The company’s revenue grew to £243.1m, up 24% on the back of premium chip pricing and the broadening adoption of its technology. The company, which designs chips for Apple and Samsung, also said it has entered the final quarter of the year with strong royalty momentum, up 37% on the year, while processor licensing revenue rose 5%.

The software and services sector was also given a boost, after investment management and information services provider Fidessa revealed it expects to announce a further special dividend when it publishes its full year results in February. The group reported strong cash generation in the second half of the year, adding it had continued to see customer markets "entering a new phase of recovery as the impact from regulatory and structural changes strengthens".