Glencore
Glencore has several mining site across the globe and has been hit by the drop in the price of copperReuters

Basic resources stocks led the market today (7 September), with the announcement that commodities giant Glencore plans to reduce its $30bn (£19.8bn) debt pile, raise liquidity on the stock markets and suspend some of its African copper output.

Its shares rose 7.3% after the company said it will sell assets, raise $2.5bn in a new share issue and suspend dividends as it looks to cut its debt by a third to $20 billion by the end of next year, exciting investors who reciprocated by investing in the resource sector.

Glencore has been under increased pressure to rein in its debts as the prices in the copper and coal markets have sunk to have sunk to more than six-year lows as China growth slows.

Shares in pure-play copper mining companies rose after the announcement that Glencore would suspend production at two African mines, removing 400,000 tonnes of copper supply from the market.

The share price of copper producer Antofagasta surged 7.53% on the news.

Russ Mould, investment director at AJ Bell Investment, said: "Glencore has faced increasing pressure to cut its $30bn debt since rating agency Standard & Poor's warned that it might lower the company's credit rating unless some action was taken.

"Glencore's measures are designed to cut debt by around $10bn without damaging its core activities. The aim is to deleverage the balance sheet and maximise cash-flow in a weak commodity price environment."

Risers and Fallers

FTSE 100 biggest risers

  • Exillon Energy +11.75 (+10.9%) 119.50
  • Kaz Minerals +11.3 (+7.55%) 161.00
  • Antofagasta +42.5 (+7.53%) 607.00
  • Glencore +8.65 (+7.02%) 131.80
  • Oxford Biomed +0.49 (+6.53%) 7.99
  • Lavendon Group +8.00 (+4.83%) 173.50

FTSE 100 biggest fallers

  • HSS Hire -6.25 (-9.73%) 58.00
  • Lonmin -2.22 (-8.09%) 25.22
  • Infinis -8.50 (-6.20%) 128.50
  • Robert Walters -27.00 (-6.18) 410.00
  • Punch Taverns -7.00 (-5.43) 122.00

FTSE AIM 100 biggest risers

  • Utilitywise +12.25 (+7.48%) 176.00
  • Boohoo.com +1.75 (+5.74%) 32.25
  • Petroceltic International +2.75 (+4.80%) 60.00
  • Fyffes +4.63 (+4.35%) 111.00
  • Polar Capital Holdings +11.88 (+3.11%) 393.63

FTSE AIM 100 biggest fallers

  • Amerisur Resources -2.00 (-7.41%) 25.00
  • Plexus Holdings -12.00 (-6.59%) 170.00
  • Monitise -0.34 (-5.73%) 5.59
  • Ithaca Energy -1.88 (-5.42%) 32.75
  • GVC Holdings -22.50 (-5.17%) 412.50