Glencore shares surge; analysts say worry about firm's survival unjustified

London

GLENCORE plc shares rallied to a one-week high and the cost to insure the company's debt against default dropped as analysts at Sanford C Bernstein & Co said concerns around the company's solvency are unjustified.

The stock rose 12 per cent to 106.85 pence at noon in London, exceeding the level before the selloff on Sept 28. The bonds rose and five-year credit-default swaps dropped 75 basis points to 626 basis points, according to data from S&P Capital IQ's CMA. In Hong Kong, the stock soared as much as 72 per cent. The company released a statement saying it wasn't aware of any reasons for the move.

Glencore, one of the world's biggest commodity traders, has recovered almost all the losses since last Monday's 29 per c…