FTSE 100 movers: Glencore rallies, but BHP tumbles amid prospect of hefty fine

London’s FTSE 250 was up 0.6% at 17,365.79, recovering from early losses in line with the broader market.

Glencore was the standout gainer, reversing earlier declines. Credit Suisse noted that Glencore is due to provide an update on 2016 guidance and beyond on 10 December. The bank said that while it doesn’t see this as a major catalyst, it forms part of a steady stream of updates that CS expects over the next six or so months. “Lower copper prices remain a key risk, but unlike peers Glencore’s marketing business continues to generate considerable cash flows and this, coupled with asset sales, should allow debt levels to fall over the next 12 months and insulate the balance sheet.”

Sage rose after Canaccord Genuity lifted the stock to ‘buy’ from ‘hold’, noting the shares are up around 40% over the last 12 months. “Typically in such instances momentum will continue to carry the stock and the tide is unlikely to turn dramatically in the near term as earnings reliability continues to improve,” the brokerage said.

On the downside, Aberdeen asset Management was the worst performer after it said full year underlying pre-tax profit rose only slightly to £491m from £490m due to the slump in Asian and emerging market equities. Assets under management slid to £283.7bn from £324.4bn as a result of investors fleeing the stock market in search of better returns in other asset classes.

BHP Billiton was under the cosh after it emerged that Brazilian authorities will demand £3.5bn from the miner, Vale and their Samarco joint venture for the tailings dam burst on 5 November. The company confirmed that the Brazilian Federal Government and state governments intend to commence legal proceedings against the Samarco joint venture and its two owners for clean-up costs and damages. BHP Billiton, which recently refuted claims that waste from the burst dam were toxic, said it has not received formal notice of the action at this stage.

Supermarket retailer Morrisons – which only narrowly escaped demotion at the June and September reviews – was in the red as it looked set to lose its spot in the FTSE 100 when the results of the latest quarterly review are announced on Wednesday. Morrisons said earlier this month that third quarter like-for-like sale fell at a faster rate than in the previous quarter and more sharply than expected, mostly due to deflation from its part in the grocery industry price war, as discount retailers Aldi and Lidl grow their market share.

Lloyds Banking Group was lower after Bernstein downgraded the stock ‘underperform’ from ‘market perform’.

Risers

Glencore (GLEN) 95.42p 3.85%
InterContinental Hotels Group (IHG) 2,572.00p 3.33%
Sports Direct International (SPD) 728.50p 2.39%
Intertek Group (ITRK) 2,810.00p 1.96%
TUI AG Reg Shs (DI) (TUI) 1,111.00p 1.93%
Antofagasta (ANTO) 506.00p 1.87%
Whitbread (WTB) 4,512.00p 1.83%
Sage Group (SGE) 584.50p 1.74%
Kingfisher (KGF) 355.70p 1.60%
easyJet (EZJ) 1,657.00p 1.53%

Fallers

Aberdeen Asset Management (ADN) 321.60p -3.94%
BHP Billiton (BLT) 783.00p -3.05%
SSE (SSE) 1,437.00p -1.58%
Centrica (CNA) 217.60p -1.45%
Morrison (Wm) Supermarkets (MRW) 153.00p -1.03%
United Utilities Group (UU.) 969.00p -0.97%
Lloyds Banking Group (LLOY) 72.72p -0.93%
Standard Life (SL.) 414.60p -0.84%
Legal & General Group (LGEN) 270.60p -0.81%
Coca-Cola HBC AG (CDI) (CCH) 1,609.00p -0.68%