Market Round Up: Big things forecast for maker of tiny tools - and maybe a bid

Now there is talk that Oxford Instruments could find itself in the sights of a predator.

Liberum Capital raised the prospect of it becoming a takeover target today, saying that, with its pension deficit now "under control" and margins progressing, "we suspect the group [will] appear on the radar of larger US peers".

The broker's analyst Ben Bourne put forward two names as possible bidders, saying Thermofisher and Bruker were both "large enough and have strong balance sheets".

Mr Bourne was rather positive on Oxford Instruments' potential more generally, bullishly saying it was a "market leader that can double its profit, or more, within three years" while adding that current forecasts "look conservative".

In response the group climbed 21p to 1,042p, continuing a run that seen its share price more than quadruple over the past two years.

The FTSE 100 continued to trade in a tight range, advancing just 14.9 points to 5,890.83.

Lloyds was at the top of the blue-chip leaderboard, rising 1.05p to 36.85p as optimism continued to grow around the banks. Meanwhile, Barclays - which kicks off the UK sector's reporting season tomorrow - managed to move 3.4p higher to 236.95p while RBS pushed up 0.55p to 29.41p.

In mining, after vague rumours emerged last night suggesting Kenmare Resources could be a possible target for a 110p-a-pop bid from giant Rio Tinto, the mid-tier miner continued to rise, shifting up another 1.65p to 51.93p.

Rio, meanwhile, slipped 58.5p to 3,813.5p on the Footsie after admitting it was taking a $9.3 billion charge on its aluminium and diamonds operations.

Espirito Santo's positivity over SuperGroup didn't last long. Back in December the broker's analysts decided to remove their "sell" rating on the fashion retailer, having watched its share price dive, but today, less than two months later, they decided they had it right last time.

Saying they were reverting "to basic instincts", the scribblers downgraded their advice to "sell" in the wake of the retailer's third-quarter statement yesterday. In response it fell another 7p to 572p, meaning it has now lost more than 18% since the update.

The news that Gulf Keystone Petroleum had hired corporate advisers to help it sell one of its Kurdistan stakes meant it was back on the rise.

The AIM-listed group has been boosted by persistent speculation it could be a target for one of the major oil firms, and today it gained another 13.75p to 330p.