Glencore shares gyrate wildly

Mining giant Glencore experienced wild price swings in Hong Kong on Monday, setting the scene for a solid rise in London.

The company’s stock was up more than 70 per cent at one stage in Asia overnight, forcing the board to issue a statement saying it is “not aware of any reasons for these price and volume movements”.

Gains in London were steadier, with shares up eight per cent in morning trade as the mining sector drove the FTSE 100 up by nearly two per cent.

Monday’s rise came after a report in The Telegraph said the company would listen to takeover offers.

Glencore's stock slumped last week after Investec issued a note warning that weak commodity prices could destroy the Swiss-based group’s equity value.

Shares in the firm tumbled nearly 30 per cent in a single day to a record low, but losses have been pared, as investors saw the selloff as being overdone and management reassured shareholders that its plan to reduce debt is still on course.