Glencore shares bounce back after HK surge

Glencore boss Ivan Glasenberg has had a stressful couple of weeks.

Shares in trader and miner Glencore surged as much as 20 per cent in London on Monday, following a 25-per cent leap on the Hong Kong market, as hopes for deal-making trumped worries over a slump in metals prices.

Glencore’s shares saw big fluctuations last week following speculation over its financial prospects.

The analysts at London advisory firm Bernstein said that sale of the agriculture assets were well advanced. The Telegraph newspaper also reported, without identifying its sources, that Glencore would listen to offers for the whole company, although its management doesn’t believe there are buyers willing to pay a fair value in the current market.

In a filing to the Hong Kong and London stock exchanges, the company noted the share price and volume movements on Monday, but said it was not aware of any reasons behind it. In Hong Kong, the stock soared a record 72 per cent.

Glencore told market regulators that it was unaware of the forces behind the share spike.

The mining and commodities-trading group has been on a communications offensive for several days after a sharp drop in the group’s stock price at the end of last month.

A rise of as much as 71% in the group’s share price in heavy trading in Asia on Monday triggered a statement from Glencore to assure investors there was no new announcement on its part to explain the gains.

Glencore’s Australian-based coal boss Peter Freyberg is scheduled to speak about the future of coal at a luncheon in Newcastle on Wednesday.