The rich payday for Varian holders almost certainly will lead to speculation about the possibility of other deals and trigger higher stock prices for other small- and mid-tier players in the semi equipment sector.

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Investec Securities said, however, that, while lower prices could trigger stronger physical demand from jewelry markets, this market is likely to pick up only around June or July as seasonal restocking takes place, driven initially from India.

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Analysts caution that a sharp rise in prices would likely trigger a return of strict controls by the government.

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