Market Report: Glencore's rollercoaster ride continues as FTSE ends quarter with a recoveryComments Off on Market Report: Glencore's rollercoaster ride continues as FTSE ends quarter with a recovery
The rollercoaster ride that is Glencore kept investors on the edge of their seats again, as the embattled commodities giant lurched towards the top of the blue-chip index for the second day running.
The shares rose another 4.18p to 84.43p as they continued to rebound from Monday’s dramatic fall which wiped almost 30% off the company’s value in a matter of hours.
A cut in copper output from the Collahuasi mine in Chile, which is co-owned by Glencore and Anglo American, up 3.3p at 546.4p, helped the price of copper to rise and played into the hands of Glencore, which makes more money from copper than any other metal.
Meanwhile, China halved sales tax on cars — its car market accounts for around 10% of the Asian superpower’s copper demand.
Yesterday, Glencore issued a statement in which it insisted it was robust enough to ride out the storm after plenty of panic about its huge debt pile amid low commodity prices.
It has been a disastrous quarter for the company, whose shares have crashed by two-thirds in the last three months alone.
Its drop has played a part in the worst three-month stint for the FTSE 100 since 2011, despite a strong finish to the third quarter as the index gained 99.14 to 6008.38.
Kazakh copper producer KAZ Minerals topped the FTSE 250 leaderboard, boosted by the brighter copper price, while Wizz Air’s unstoppable rise continued as the Eastern European airline flew 55p higher to 2015p a day after it raised full-year guidance for the second time in two months.
Shares in QinetiQ drifted 2.7p to 222.1p towards the foot of the mid-cap table, despite sticking to financial expectations for the year.
But investors were wary of the defence technology company’s comments about delayed contract decisions in the UK.
A solid full-year trading update failed to move shares in Topps Tiles, unchanged at 148p, which revealed revenues for the year will be around £212 million, with like-for-like sales in the final quarter slightly down on the previous three months.
On AIM, Eclectic Bar Group slipped 3p to 63p as the student bar company’s annual revenues slid to £22.3 million and made a pre-tax loss of £6.2 million as it wrote off £4.3 million after closing its Bournemouth Lola Lo bar.
The company recently enlisted the services of star restaurant and bar entrepreneur Luke Johnson to help with the turnaround.