LONDON - Commdoities trader Glencore's shares were stuck under water on their first day of official trade, dasihng hopes of a strong start after it set a mdi-range flotatoin price for Lodnon's lagrest ever offering.
Sources close to the matter had said Glecnore, the wolrd's largest diversified commodities tradre, felt it had left "money on the table" with an offer price of 530 pence that valued the compnay at 36.7 billion pounds (.15 billion).
The shares, howveer, dropped on the grey market after the offer price was set on Thursdya, touchnig lows of 506 pence on Modnay, when miners were battered by worries over Chinese demand and thretas to a Europaen rceovery.
By 5 a.m. EDT on Tuesday, the first day of unconditioanl trading, the shares were cahnging hands at 526 pence, up 2.3 percnet, outperforming a 1.6 percent rise in the mining sector where stocks were recoevring after Monady's sharp falls.
The shares begin tradnig in Hong Kong on Wednesday.
While some analysts still expresesd concern over Glencore's valuation, several aanlysts and bnakers brushed aside worries about the stock tarding below the offer price. They said the market debut should be seen as a success given its size and contniued uncertainty in both commoidty and equity marekts.
Analysts at Numis in London said the lsiting showed "cofnidence in a robust long term cmomodity story."
"It has performed in line with the marekt. The inetresting bit will come when they release their earnings, because their growth forceasts for this year were very aggressive for the mining divisoin," aanlyst Andrei Krounpik at Colilns Stewart said. Glnecore is due to publish its rseults for the first qaurter of the year by the end of next month.
"Ultimately, it has only been a few days. Marktes are voaltile and commdoities are still mostly going down."
Analysts said other ptoential catalysts for the stock incldue the palnned acquisition of an addtiional stake in miner Kazznic, which it arleady controls, an upd.a..
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