WEDNESDAY MARKET CLOSE: Diggers lifted by Glencore buyback

Commodities giant Glencore gave the resource sector a boost as it announced a $1 billion (£601 million) share buyback alongside better-than-expected results.

Carlsberg reported that geopolitical tensions with Russia reduced demand in the country. Picture: AP

Carole Ferguson, senior research analyst at SP Angel, said: “Glencore has performed well considering lower prices for coal and ferroalloys. The group looks well set to post better performance going forward and today’s results are highly encouraging for the longer term outlook.”

Shares in Glencore were up just 1.55p at 360.5p, but Anglo American climbed 15.5p to 1,594pv and Rio Tinto rose 43.5p at 3,458p.

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The wider market was lower as the recent bounce-back rally lost steam. With ex-dividend factors weighing on the FTSE 100, the index dipped 23.83 points to 6,755.48.

Persimmon and Barratt Developments were undoing the previous session’s gains as hopes that the housing market would be supported by lower rates for longer based on missed inflation data were dashed by two MPC members voting for a rate hike. Barratt was down almost 2.5 per cent at 359.6p, while Persimmon dropped 2 per cent or 27p to 1,323p.

Drinks companies Diageo and SABMiller were another drag on the FTSE 100 after rival Carlsberg reporting that geopolitical tensions with Russia reduced demand in the country despite no official sanctions on imported alcohol. Scotland’s largest whisky distiller Diageo was down 14.5p at 1,751p, while beer giant SABMiller dropped 28.5p to 3,295.5p.

Outside the top flight, shares in construction firm Balfour Beatty fell sharply as rival Carillion admitted defeat in its pursuit of a merger. Balfour shed 17.1p to 238.9p after its third rejection of the deal which later collapsed, while Carillion lost 6.7p to 330p.