Market Report: InterContinental Hotels unabashed as major shareholder sells out

Investors checked into InterContinental, despite jitters over the shares.

Management at the hotels giant behind the Holiday Inn brand were doubtless cheered that shareholders appeared unfazed by reports that Marcato Capital Management has sold most or all of its 4% stake in the business.

The San Francisco-based fund manager’s £200 million stake was reportedly sold after InterContinental Hotel Group denied a report in July which said it held preliminary merger talks with Starwood Hotels & Resorts.

Shares rose 8p, or 0.34% to 2393p.

Royal Mail was not so positive. The delivery firm, which dipped 0.8p to 462.1p, revealed it had bought a stake in Market Engine Global — an Australian e-commerce technology start-up.

But it was the mining sector that was really dominating the blue-chip index. Glencore was the top performer, rocketing 6.85p, or 5%, to 130p after its bombshell announcement of a $10 billion (£6.6 billion) package of debt-reduction measures.

Oliver O’Donnell, equity analyst, metals and mining at VSA Capital said: “Financial leverage has been a key concern for investors and it is positive that Glencore is addressing the issue as its shares have fallen 60% since the start of May 2015.”

Elsewhere at the top end of the leader board was Antofagasta, up 49p to 6135.p, and Anglo American, rising 16.9p to 685.4p. Rio Tinto, Fresnillo and BHP Billiton were also up.

At the end of last week, the FTSE 100 dipped after the release of US jobs data suggested a Federal Reserve interest rate rise may still be possible this month. But Britain’s benchmark index today bounced back from Friday’s losses and increased 49.53 points to 6092.13.

On the FTSE 250, property investor Redefine International was among the worst performers after it announced a £437.2 million purchase update.