Bullish broker comments put semiconductor companies on the small-cap risers board.

A “buy” tip from Jefferies International lifted Imagination Technologies by 1½p to 127½p. Setting a 156p price target, the broker argued that Imagination’s multimedia chip designs have the potential to become the mobile phone industry standard, just as Arm Holdings captured the market for central processors last decade.

Meanwhile, sector peer Wolfson Microelectronics, which makes sound chips, added 1¾p to 296p after Dresdner Kleinwort’s team dismissed fears that new handsets from LG and Samsung could face delays.

There was less of an appetite for oil explorers, despite some promising drilling news. Oil-exco, which is expected to announce a move to the main market within the next couple of weeks, firmed 1p to 590p after tests on its Huntington prospect, potentially one of the biggest discoveries in the North Sea, while encouraging results from an early-stage prospect in Lousiana lifted Sterling Energy by ¼p to 16p.

Mediterranean Oil & Gas was steady at 165p while its management met investors in London. The group is expected to release test results from its Maltese site within the next few weeks, and should hear soon on whether it has secured onshore licences in Italy.

The IT group Civica jumped 26p to 277p after saying it had received a takeover approach from a private equity firm. Altium Securities said that a takeout price of 300p looked possible as buyout funds look for a vehicle to consolidate the sector. “Anite’s public sector business would be an obvious target,” the broker added, helping to lift Anite by 1½p to 75p.

Among the new issues, Modern Water closed at 123p against a 119p placing price. The desalination technology group raised £30 million via an oversubscribed share placing.

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