Shares in Glencore rose after it outlined plans to sell its stake in its joint business following a sharp fall in nickel prices.
The FTSE 100 mining giant has spent more than £3billion since 2013 on running the Koniambo project in the French territory island of New Caledonia.
But Glencore said weak nickel prices – which have tumbled by nearly half since the start of last year – means the business ‘remains an unprofitable operation’.
‘For over ten years, Glencore has been the primary funder of Koniambo Nickel SAS [KNS] without ever realising a profit,’ a spokesman for the company said.
Glencore is gearing up to find a new industrial partner for KNS.
Glencore has spent more than £3bn since 2013 on running the Koniambo project in the French territory island of New Caledonia
Shares added 2.4 per cent, or 9.2p, to 394.25p yesterday.
Glencore owns 49 per cent of KNS and the Caledonian nickel company Societe Miniere du Sud Pacifique (SMSP) controls the rest.
The blue-chip firm said it ‘cannot justify continuing to fund losses to the detriment of its shareholders’.
This is despite attempts by the French government to rescue the nickel industry in New Caledonia, an island located to the east of Australia.
The FTSE 100 inched up 0.01 per cent, or 1.11 points, to 7573.69 and the FTSE 250 gained 0.7 per cent, or 141.61 points, to 19203.93.
Oil prices dipped as Brent crude fell more than 1pc to below $81.30 a barrel. The conflict in the Middle East, increased US production and the prospect of higher for longer interest rates have weighed on the black gold.
Stock Watch – Malvern International
A company that offers courses to help students improve their English swung back into profit after strong demand for its summer language camps for teenagers.
Malvern International expects to report a £300,000 profit in 2023, having made a £1million loss the year before.
Revenues are likely to have increased 79 per cent to £11.3million. Second-half sales soared nearly three-quarters to £7.3million as 2,478 students paid to attend its summer camps. Shares gained 10 per cent, or 2.5p, to 27.5p.
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AstraZeneca sank after downgrades from the City. Investment bank UBS said the Anglo-Swedish pharma giant’s fourth-quarter results last week left investors concerned by the ‘accelerating costs’. Shares shed 2.7 per cent, or 260p, to 9501p.
Mike Ashley’s fashion chain Frasers Group, which owns Sports Direct, Jack Wills and Flannels, launched an £80m share buyback. Shares rose 5 per cent, or 39p, to 822.5p.
The Upper Crust and Ritazza owner SSP flew higher after it agreed to buy Australia’s Airport Retail Enterprises for around £75m. Shares in the airport caterer rose 1.1 per cent, or 2.4p, to 226.6p.
The chairman of Audioboom bought more than £10,000 worth of shares in the podcast publisher.
Michael Tobin bought 4,490 shares for 235p each on Friday, taking his stake to around 4.9 per cent, according to the latest regulatory filing.
But that was less than the 240p the stock closed at the day before. Shares fell 4.3 per cent, or 10p, to 225p.
Wall Street’s record-breaking start to the year showed little sign of slowing. Having closed above the 5,000 mark for the first time last week, the S&P yesterday hit another record high.
The index – home to America’s biggest companies, from Microsoft and Apple to Coca-Cola – is on course to clock up its sixth consecutive week of gains.
The Dow Jones Industrial Average also reached a record and the tech-heavy Nasdaq closed in on its all-time high.
Optimism over artificial intelligence and hopes that the Federal Reserve will start cutting interest rates has sparked a rally on Wall Street.
Chipmaker Nvidia briefly became the fourth most valuable company in the US when it touched $1.82 trillion.
It was a busy session for property landlords and investors.
Warehouse REIT rose 2.3 per cent, or 1.9p, to 86p after it sold two assets for £13.4m and Sirius Real Estate added 0.5 per cent, or 0.45p, to 84.65p after buying two business parks in Germany for around £34million.
Another riser was Galliford Try after the construction group was awarded a place on the new £3.2billion Communities & Housing Investment (CHIC) new-build development framework for affordable homes. Shares gained 6.5 per cent, or 15.5p, to 253.5p.
