LONDON: U.K. stocks bounced higher Monday, with Glencore PLC rallying after the mining company outlined plans to slash its debt.
The FTSE 100 UKX, +0.75% gained 1.2% to 6,113.11, with all sectors trading higher, led by basic materials. The rise helped cut into the benchmark’s weekly drop of 3.3% last week.
Glencore PLC GLEN, +7.02% climbed 12% after the miner and commodities trader said it’s undertaking measures aimed at reducing net debt by about $20 billion. The company is ditching its final dividend and plans a $2.5 billion stock sale.
Glencore shares this year have hit their lowest levels, driven down with other mining shares as metals prices have come under pressure. Part of that pressure has come from fears that economic growth is slowing in China, where stock markets have been turbulent in recent weeks. The Shanghai Composite Index SHCOMP, -2.52% fell 2.5% on Monday, when it opened for trading for the first time in four days.
Other mining stocks were higher, with copper producer Antofagasta PLC ANTO, +8.24% up 7.2% and Anglo American PLC AAL, +2.26% up 2.9%.
Among the declines on the London index was Associated British Foods PLC ABF, -2.10% Shares were off 2.4% after the company, which owns fashion retailer Primark as well as food production units, said full-year earnings will come in below what it made last year. It cited strength in the pound and weaker earnings from its sugar division for the warning. However, ABF said full-year profit will meet the outlook it gave in June.
Tesco PLC TSCO, -0.59% shares slipped 0.2%. The supermarket chain said it sold its South Korean operations, known as Homeplus, to MBK Partners LP for £4 billion ($6.12 billion), which will be used to cut debt.
