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Glencore rallies fourth day in Hong Kong as debt concerns ease
[HONG KONG] Glencore Plc rallied a fourth day in Hong Kong, as the global commodities trader extended its recovery amid speculation that the recent sell-off in its stock was overdone.
The stock rose as much as 13 per cent and by 10:02 am in Hong Kong was 9.2 per cent higher at HK$13.76. On Monday, the company's Hong Kong shares gained 18 per cent to their highest close since Sept 24, and surged a record 21 percent in London, after analysts from Sanford C. Bernstein & Co said Glencore's debt didn't present an existential crisis for the firm, which is led by billionaire Ivan Glasenberg.
Glencore's share price collapse and recovery last week centered on its battle to convince investors over its ability to pay back debt amid a plunge in commodity prices. Its Hong Kong stock surged as much as 72 per cent at one point on Monday, prompting the company to say it wasn't aware of any reason for the move.
Mr Glasenberg avoided the topic of the company's stock performance at a conference in London on Monday, focusing instead on the prospects for a recovery in the price of copper, which provides nearly a third of the company's earnings. The copper market will tighten and prices will go up as loss-making production is shut down, he said.