PlayStation delay keeps dealers away from CSR

By Geoff Foster for MailOnline
Updated: 02:48 EDT, 21 February 2006

SELLERS zapped CSR, the former Cambridge Silicon Radio, on hearing that Sony's next-generation PlayStation 3 video games console could miss its spring launch if industry specifications for some of of its technology are not finalised soon.

After collapsing to 1056p, the shares rallied to finish 36 &frac12p lower at 1079 &frac12p.

PS3 will not just offer games, teenagers will also be able to play music and watch videos.

However, sector analysts now believe the US launch will be delayed until November, while Europeans may have to wait until early next year to get their hands on one.

Broker UBS warned clients that CSR, the market leader in bluetooth technology, had been expected to win the contract for the PS3's Bluetooth-enabled games controller.

Any delay in its launch could be negative for CSR, which will now need to produce excellent full-year results next Tuesday to drive the share price any higher.

The Footsie marched a further 16.8 points to a near five-year high of 5863 as takeover speculation continued to keep dealers on their toes.

Fund managers returning from school half-term skiing breaks happily chased several candidates higher knowing there would be no late hindrance from across the pond.

Wall Street was closed for the Presidents' Day holiday.

A combination of revived takeover hopes and buying ahead of today's results lifted investment management group Schroders 42 &frac12p to 1172p. Pretax profits are expected to jump to £224.1m from £191m. Recent rumours have also suggested it could be interested in buying-rival fund manager Gartmore. Gas supplier Centrica, known to be on Gazprom's radar screen, jumped 10p to 296p ahead of Thursday's annual results. Analysts forecast pre-tax profits of around £1.43bn, up from £1.21bn last year.

B&Q retailer Kingfisher erected a speculative gain of 6 &frac34p to 231 &frac34p amid talk that US DIY giant Lowes is casting an eye over the UK group.

After South Africa's Gold Fields said it was not interested in bidding, mining group Lonmin succumbed to profit-taking and closed 58p off at 2613p.

Xstrata jumped 41p to 1742p as rumours of a possible bid from BHP Billiton (22p better at 1006p) continued to do the rounds.

Rio Tinto soared 78p to 2945p on hopes it could be dragged into the sector's corporate shenanigans. Discount airline easyJet, in which Icelandair owns 16.2pc, cruised 10 &frac12p higher to 395 &frac12p ahead of tomorrow's agm. It is JPMorgan's top pick in the European airline sector and analyst Chris Avery believes the consensus view is still too bearish on potential margin recovery.

Worries about the escalating bird flu epidemic prompted selling of package tour operators. Mytravel shed 10 &frac34p to 230p and First Choice 9 &frac14p to 226 &frac34p.

Almost 63m Ultrasis ( &frac38p better at 2 &frac58p) changed hands. Hopes are high that the National Institute of Clinical Excellence will tomorrow recommend the group's Beating the Blues computerised package should be used to beat depression. If that happens, the system could be rolled out across the NHS.

Punters got sucked back into Regal Petroleum, 19 &frac14p up at 61p. They piled in on hearing that the Supreme Court of Ukraine has ruled in favour of the company and dismissed the final appeal brought by state-run CNGG regarding the distribution of assets within their former joint venture.

Petards, the AIM-listed developer of surveillance systems, edged up 0.13p to 0.98p on a bullish trading update.

Fairplace Consulting slumped 4p in a restricted market to 15 &frac12p. The recruitment and human resources company reported widening interim losses and a £450,000 fund-raising at 12p a share.

Acquisition news lifted Pilat Media Global 2p to 43 &frac12p. The business management software group has bought ML Software - known as Media Line - the Dutch supplier of software solutions for airtime advertising sales.