London - Britain's top share index rose nearly 2 percent on Monday as Glencore led mining companies higher.
Glencore shares surged as much as 20 percent in London, following a 25-percent leap on the Hong Kong market, on hopes the company would sell some assets to cut its debt. The shares were up 9.6 percent at 08h04 GMT and have now recouped last week's losses.
The UK mining index was up 3.2 percent, helping the FTSE 100 index gain 1.9 percent to 6,246.40 points by 08h22 GMT.
Reuters reported on Friday that Glencore was in talks with a Saudi Arabian sovereign wealth fund and China's state-backed grain trader COFCO, along with Canadian pension funds, to sell a stake in its agricultural assets.
Analysts also cited a Telegraph report that Glencore would listen to offers for the entire company, but its management doubts it could find buyers willing to pay a fair value for the business in the current market.
“Glencore is tracking a spike in its Hong Kong shares and after the Telegraph report,” said Mike van Dulken, head of research at Accendo Markets. “Miners in general are getting support from metals, which are up on the back of a weaker dollar on hopes of a loose US monetary policy for longer.”
In a filing to the Hong Kong and London stock exchanges, Glencore said it knew of no reason for the share movements.
Outsourcing company Xchanging soared 52 percent after saying that it had received separate takeover proposals in recent months from British peer Capita and US-based private equity firm Apollo Global Management.
Playtech shares fell 3.2 percent after the company said it had received a letter from Central Bank of Ireland opposing its proposed acquisition of Ava Trade.
Stocks were little changed after a purchasing managers' index on Monday indicated that economic growth slowed in Britain during the three months to September.
REUTERS