FTSE 100 movers: Anglo American up despite dull De Beers; Haleon falls

Legal & General Investment Management (LGIM) said that its environmental, social and governance and some pension funds would divest their stake in commodities miner and trader Glencore due to its thermal coal operations.

The decision came as L&G published its latest climate impact pledge report

"We remain concerned that Glencore does not meet our red line asking mining companies to disclose whether they plan to increase thermal coal capacity," LGIM said.

It will divest Glencore shares held in its Future World fund range, LGIM’s ESG fund ranges, and all defined contribution (DC) auto-enrolment default funds in L&G Workplace Pensions and the L&G Mastertrust.

“We remain concerned that Glencore does not meet our red line asking mining companies to disclose whether they plan to increase thermal coal capacity,” LGIM said, adding that the decision to divest came after filing a shareholder resolution at Glencore last year requesting the company disclose how projected thermal coal production aligned with the Paris Agreement’s objective to pursue efforts to limit the global temperature increase to 1.5°C.

Haleon said on Wednesday that it has agreed to sell its nicotine replacement therapy (NRT) business outside of the US to Dr Reddy's Laboratories for £500m.

The portfolio consists of brands including Nicotinell, Nicabate, Habitrol and Thrive available in gum, lozenge and patch forms across over 30 markets.

Haleon said use of the net cash proceeds will be determined in line with capital allocation priorities, including reducing leverage.

The deal, which is expected to complete early in the fourth quarter, will allow the company to exit the NRT category outside of the US and will reduce complexity across the business "allowing increased focus on strategic growth areas," it said.

Anglo American has reported another dip in rough diamond sales from De Beers as it warned of a "protracted" recovery in demand.

In what is generally a quieter period for rough diamond sales, De Beers' fifth sales cycle generated $315m, down from $383m in the fourth cycle and $446m in the third.

However, this was also down from $456m in the fifth cycle of 2023.

De Beers chief executive Al Cook said while the company had seen a "resurgence in retailers' interest" in the US at the recent annual JCK jewellery show in Las Vegas, "ongoing economic growth challenges in China mean we continue to expect a protracted U-shaped recovery in demand".

Anglo announced in May that it intends to either divest or demerge the De Beers division "to improve strategic flexibility". The news came alongside an announced shake-up of the group's portfolio which includes the sale or spin-off of what it now deems non-core assets such as diamonds, steelmaking coal, nickel and platinum.

Insurance and pensions group Phoenix on Wednesday said it was looking to offload its SunLife business after deciding it was no longer core to operations.

Phoenix said it had received a "a number of initial expressions of interest from third parties", but warned there could be no certainty at this stage that a disposal will occur".

SunLife is a leading provider of financial protection products direct to the over 50s market in the UK and reported profit after tax of £16m in 2023.

Flutter Entertainment led the FTSE 100 fallers. Airlines were also lower with budget carrier easyJet and British Airways owner IAG both in the red,

Market Movers
FTSE 100 - Risers

Fresnillo (FRES) 566.00p 1.16%
Associated British Foods (ABF) 2,527.00p 1.16%
Rio Tinto (RIO) 5,295.00p 1.07%
Convatec Group (CTEC) 233.40p 0.86%
Smith & Nephew (SN.) 987.60p 0.86%
Marks & Spencer Group (MKS) 290.00p 0.80%
Kingfisher (KGF) 245.80p 0.66%
F&C Investment Trust (FCIT) 1,016.00p 0.40%
Anglo American (AAL) 2,529.00p 0.36%
Rentokil Initial (RTO) 460.00p 0.35%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 14,335.00p -3.14%
International Consolidated Airlines Group SA (CDI) (IAG) 163.15p -3.00%
easyJet (EZJ) 450.80p -2.76%
Entain (ENT) 645.40p -2.27%
Airtel Africa (AAF) 115.90p -1.70%
Land Securities Group (LAND) 615.00p -1.68%
Smurfit Kappa Group (CDI) (SKG) 3,556.00p -1.66%
Intertek Group (ITRK) 4,654.00p -1.65%
WPP (WPP) 731.60p -1.64%
SEGRO (SGRO) 887.80p -1.60%