Glencore shares 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 £3bn since 2013 delivering the Koniambo project on the French island of New Caledonia.
But Glencore said weak nickel prices – which have fallen by almost half since the beginning of last year – mean the business “remains an unprofitable operation”.
“For more than ten years, Glencore has been the main financier of Koniambo Nickel SAS (KNS) without making a profit,” a company spokesperson said.
Glencore is preparing to find a new industrial partner for KNS.
Glencore has spent more than £3bn since 2013 delivering the Koniambo project on the French island of New Caledonia.
The shares rose 2.4 per cent, or 9.2p, to 394.25p yesterday.
Glencore owns 49 percent of KNS and Caledonian nickel company Société Miniere du Sud Pacifique (SMSP) controls the rest.
The blue-chip company said it “cannot justify continuing to finance losses to the detriment of its shareholders.”
This is despite the French government’s attempts to rescue the nickel industry in New Caledonia, an island east of Australia.
The FTSE 100 rose 0.01 per cent, or 1.11 points, to 7,573.69 and the FTSE 250 gained 0.7 per cent, or 141.61 points, to 19,203.93.
Oil prices fell as Brent crude fell more than 1 percent to below $81.30 a barrel. The conflict in the Middle East, rising US production and the prospect of higher interest rates for longer have weighed on black gold.
AstraZeneca sank after City’s rating downgrades. Investment bank UBS said the Anglo-Swedish pharmaceutical giant’s fourth-quarter results last week left investors concerned about “accelerating costs.” The shares lost 2.7 per cent, or 260 pence, to 9,501 pence.
Mike Ashley’s fashion chain Frasers Group, which owns Sports Direct, Jack Wills and Flannels, has launched an £80m share buyback. The shares rose 5 per cent, or 39 pence, to 822.5 pence.
SSP, owner of Upper Crust and Ritazza, has flown higher after agreeing to buy Australia’s Airport Retail Enterprises for around £75 million. Shares in the airport catering company rose 1.1 per cent, or 2.4p, to 226.6p.
Audioboom’s chairman has bought more than £10,000 worth of shares in the podcast publisher.
Michael Tobin bought 4,490 shares at 235 pence each on Friday, taking his stake to around 4.9 per cent, according to the latest regulatory filing.
But that was down from the 240p the shares closed at the previous day. The shares fell 4.3 per cent, or 10p, to 225p.
Wall Street’s record start to the year showed few signs of slowing down. After closing above the 5,000 mark for the first time last week, the S&P hit another all-time high yesterday.
The index, which houses America’s largest companies from Microsoft and Apple to Coca-Cola, is on track to post its sixth consecutive week of gains.
The Dow Jones Industrial Average also hit a record high and the tech-heavy Nasdaq neared its all-time high.
Optimism about artificial intelligence and hopes that the Federal Reserve will begin cutting interest rates have sparked a rally 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 very intense session for owners and investors.
Warehouse REIT rose 2.3 per cent, or 1.9p, to 86p after selling two assets for £13.4m and Sirius Real Estate added 0.5 per cent, or 0.45p, to 84p. .65p after buying two business parks in Germany for around £34 million.
Another promotion was Galliford Try after the construction group secured a place in the new £3.2bn affordable housing new build development framework (CHIC). The shares gained 6.5 per cent, or 15.5p, to 253.5p.