Market Report: Glencore shares rise after it retires a loss-making nickel mine

Glencore shares rose after it announced plans to sell its stake in its combined business following a sharp decline in nickel prices.

The FTSE 100 mining giant has spent more than £3bn since 2013 managing the Coniambo project on the French territory island of New Caledonia.

But weak nickel prices – which have fallen by almost half since the start of last year – mean the business “remains an unprofitable operation”, Glencore said.

A company spokesman said: “For more than ten years, Glencore has been the main financier of Konyambo Nickel SAS (KNS) without ever making any profit.”

Glencore is preparing to find a new industrial partner for KNS.

Glencore has spent more than £3 billion since 2013 managing the Coniambo project on the French territory of New Caledonia.

Glencore has spent more than £3 billion since 2013 managing the Coniambo project on the French territory of New Caledonia.

Shares added 2.4 per cent, or 9.2 pence, to 394.25 pence yesterday.

Glencore owns 49 percent of KNS, while Caledonian nickel company Societe Miniere du Sud Pacifique (SMSP) controls the rest.

The major company said that it “cannot justify continuing to finance losses at the expense of its shareholders.”

This comes despite the French government’s attempts to save the nickel industry in New Caledonia, an island located east of Australia.

The FTSE 100 rose 0.01 per cent, or 1.11 points, to 7,573.69 points, while the FTSE 250 rose 0.7 per cent, or 141.61 points, to 19,203.93 points.

Oil prices fell, with Brent crude falling more than 1 percent to less than $81.30 a barrel. Conflict in the Middle East, increased US production and the possibility of higher interest rates for a longer period weighed on the black gold.

Stock Watch – Malvern International

A company that offers courses to help students improve their English has returned to profit after strong demand for its summer language camps for teenagers.

Malvern International expects to make a profit of £300,000 in 2023, after making a loss of £1m the previous year.

Revenue is likely to increase by 79 per cent to £11.3 million. Second-half sales rose by almost three-quarters to £7.3m as 2,478 students paid to attend summer camps. Shares rose 10 per cent, or 2.5p, to 27.5p.

AstraZeneca sank after it was downgraded by the city. Investment bank UBS said the Anglo-Swedish pharmaceutical giant’s fourth-quarter results last week left investors concerned about “accelerating costs.” Shares fell 2.7 per cent, or 260p, to 9,501p.

Mike Ashley’s fashion chain Frasers Group, which owns Sports Direct, Jack Wills and Flannels, has launched an £80m share buyback. Shares rose 5 per cent, or 39 pence, to 822.5 pence.

Shares in Upper Crust and Ritazza owner SSP rose after it agreed to buy the Australian airport retail businesses for about £75 million. Shares of the airport catering company rose 1.1 per cent, or 2.4 pence, to 226.6 pence.

The boss of Audioboom has bought more than £10,000 worth of shares in the podcast publisher.

Michael Tobin bought 4,490 shares worth 235 pence each on Friday, raising his stake to about 4.9 percent, according to the latest regulatory filing.

But that was less than the 240p the stock had closed at the previous day. Shares fell 4.3 per cent, or 10p, to 225p.

Wall Street’s record start to the year shows little sign of slowing. After closing above 5,000 for the first time last week, the S&P index hit another record high yesterday.

The index — home to the largest U.S. companies, from Microsoft and Apple to Coca-Cola — is on track for a sixth straight week of gains.

The Dow Jones Industrial Average also reached a record high, and the tech-heavy Nasdaq closed at an all-time high.

Optimism about artificial intelligence and hopes that the Federal Reserve will start cutting interest rates have led to a rise in interest rates on Wall Street.

Chipmaker Nvidia briefly became the fourth most valuable company in the United States when it reached $1.82 trillion.

It was a busy session for real estate owners and investors.

Warehouse REIT rose 2.3 per cent, or 1.9 pence, to 86 pence after it sold two assets for £13.4 million, and Sirius Real Estate added 0.5 per cent, or 0.45 pence, to 84.65 pence after buying two shopping complexes in Germany for about 34 million pounds sterling.

Another rise was the Galliford Try after the construction group secured a place on the new £3.2bn Communities and Housing Investment (CHIC) new build development for affordable homes. Shares rose 6.5 per cent, or 15.5 pence, to 253.5 pence.

(tags for translation) Daily Mail

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