‘Steady as she goes’ would be a good description for most of indices we follow. As you can see from the chart, NASADAQ, FTSE100 and TechMark100 all advanced between 1 and 2% - which is actually pretty good in the circumstances. All showing really healthy advances YTD.
The FTSE Hardware Index in the UK advanced by a pretty massive 11% (30% YTD). Most of that was down to ARM which soared by 16.4% this month due to increased bullishness around the mobile (smartphone and tablet) marketplaces where ARM dominates. You could say that this was at the expense of Intel whose shares fell nearly 9%. See Otellini quits Intel. News that the Windows 8 launch has failed to give a boost to PC sales is another bitter blow. Indeed, Microsoft was down nearly 7% in Nov 12 too.
Conversely, the FTSE Mobile Telcomm Index fell 4% in Nov (c-9% YTD). Again this was mostly down to its biggest constituent – Vodafone– which fell 4.2%. This was caused by slumping revenues in Southern Europe as the Eurozone woes in Spain and Italy affected spending. BT (up 10% in Nov – see BT Global Services to continue cost cutting), helped the FTSE Fixed Line Index to record a 8.4% gain – making up for a 7.4% fall at Cable & Wireless and a 9% fall at Colt. In all these cases readers, I am sure, are aware that the indices are weighted – so big companies like ARM and BT have a huge influence on the indices.
On the global SITS markets, we admit our surprise at the 33% rise in Facebook in Nov – indeed they are up over 50% from their September low. For my views read Recoveries. Yahoo! did well too; recording an 11.5% rise as rumours emerged of a tie up with Facebook at the expense of Microsoft in search. See Facebook + Yahoo!
CSC also soared – up 25% - in Nov. See Signs of progress at CSC. Progress indeed. CSC shares are up 61% YTD. We were not at all surprised to see CGI fall 12.7% as they reported their first results since the Logica acquisition. Readers must know our views on this one? If not try Logica halves margins at ‘flat’ CGI and work back. Mind you our views were widely reported in the mainstream media too this month.
Of course the biggest global shock of the month came from HP and their accusations against Autonomy’s former management. We have written many times on this. If you have missed any of our many posts, start at HP, Autonomy – The day after the day after and work back. Not surprising, therefore, to report a further 6.5% slump in HP’s share price this month.
Finally, UK SITS stocks recorded another impressive month – up 5.4% in Nov. So that’s 29% YTD. This month EG Solutions lead the tables with a 39% rise with Access Intelligence (up 32%) and Quindell Portfolio (up 27% - Quindell raises another £20m). Conversely, the fallers were lead by INSTEM (down 17% - See Instem profits slump in first half)) and Monetise (down 13% - See Monetise to monetise more investor interest. Clearly the markets do not like the thought of another £100m cash call so soon after the last one).
Wednesday brings the Chancellor’s Autumn Statement when we will all know how much worse off we will be next year. Oh happy days.