FTSE 100 movers: Glencore surges on refinancing, Anglo jumps as brokers hail overhaul

London’s FTSE 100 was up 2% to 5,978.28 at 1407 GMT, with commodity stocks pacing the advance.

Glencore was the standout gainer after it secured early refinancing of a $8.45bn loan facility.

The new facility will refinance and replace the FTSE 100 company’s existing $8.45bn (£5.92bn) facility, which was due to expire in May.

"Reflecting the high oversubscription level, Glencore has currently scaled back and signed in $7.7bn of such commitments and will now broaden the refinancing via launch of general syndication to some 30 additional banks in Q2 2016," the board said in a statement.

Anglo American also racked up impressive gains as Deutsche Bank and Credit Suisse lifted their target prices on the stock following the company’s full year results.

Anglo outlined its promised “radical” overhaul on Tuesday, as it announced a pre-tax loss of $5.5bn after $3.8bn of write-downs since the half year.

The company said it planned to reduce the core portfolio to 16 diamond, platinum group metals and copper assets and announced further cost-cutting measures.

Deutsche Bank raised the price target to 465p from 300p, saying four main issues have now been addressed: commitment to a lower gearing level; an intention to sell some of the bigger, higher quality assets for value; presentation of free cash flow scenarios if spot prices worsen; and most importantly, a higher cost cutting target for 2016.

Meanwhile, Credit Suisse lifted its target price on ‘neutral' rated Anglo to 470p from 320p, saying the cost-cutting targets were much better than it and the market expected.

Aerospace and defence group Rolls-Royce was on the front foot amid media reports it is considering a bid by activist shareholder ValueAct for a seat on the board.

According to the Financial Times, Rolls-Royce is looking to back the US hedge fund’s attempt to gain representation on the board following its acquisition of a 10% stake in the group.

Last week, Rolls-Royce – which has issued five profit warnings in the last two years – cut its dividend for the first time in 25 years, a move that was broadly welcomed by investors and saw the share price surge.

FTSE 100 - Risers

Glencore (GLEN) 112.90p 9.66%
Anglo American (AAL) 427.50p 7.43%
Legal & General Group (LGEN) 223.20p 5.43%
Burberry Group (BRBY) 1,272.00p 4.95%
BHP Billiton (BLT) 721.80p 4.16%
Aberdeen Asset Management (ADN) 235.70p 4.06%
InterContinental Hotels Group (IHG) 2,398.00p 3.99%
Prudential (PRU) 1,230.00p 3.93%
Hargreaves Lansdown (HL.) 1,228.00p 3.89%
Rolls-Royce Holdings (RR.) 656.00p 3.88%

FTSE 100 - Fallers

Randgold Resources Ltd. (RRS) 5,990.00p -0.25%
easyJet (EZJ) 1,535.00p -0.20%
GlaxoSmithKline (GSK) 1,416.00p -0.11%
SABMiller (SAB) 4,171.00p -0.10%
National Grid (NG.) 954.60p -0.09%
Severn Trent (SVT) 2,123.00p -0.05%
Rexam (REX) 598.00p 0.08%
Standard Life (SL.) 342.00p 0.12%
United Utilities Group (UU.) 921.50p 0.38%
Centrica (CNA) 192.60p 0.47%