(Adds analyst comments)
MELBOURNE, Oct 5 (Reuters) - Shares in beleaguered trader and miner Glencore Plc GLEN.L 0805.HK rocketed as much as 72 percent on Monday in heavy trading in Hong Kong on hopes it would be able to cut debt with a sale of a stake in its agricultural assets.
Reuters reported on Friday that Glencore is in talks with a Saudi Arabian sovereign wealth fund and China's state-backed grain trader COFCO, along with Canadian pension funds, to sell a stake in the assets. ID:nL5N1222WR
In a filing to the Hong Kong and London stock exchanges, the company noted the share price and volume movements on Monday, but said it was not aware of any reasons behind it. ID:nFWN124067
On Monday the stock rebounded in Hong Kong to a one-month high of HK$18.36, then eased to trade up 26 percent at HK$13.52 in its biggest one-day gain ever. Traders said the stock was also helped by expectations that the U.S. may delay an interest-rate rise following a weaker-than-expected Sept jobs report.
Glencore wants to sell some assets as part of a wider plan to cut about a third of its $30 billion in net debt, including raising $2.5 billion through a share sale, suspending its dividend and cutting costs by trimming its copper output.
But doubts had grown last week that Glencore would be able to pay down debt fast enough to withstand a prolonged slump in commodities prices. Its shares sank to a record low last week, down 87 percent from when it listed in 2011.
"While the leverage is clearly of concern it is not anywhere near an immediate existential threat to the company - it is an issue that needs to be managed, and that is exactly what the company is doing," broker Sanford Bernstein said in a note on Monday.
Bernstein maintained an "outperform" rating on the stock with a target of 450 pence. In early trading London shares GLEN.L traded up 10 pct at 104.50 pence.
The broker's comments echoed those made by Citi last week saying the commodity powerhouse does not need to go to bond markets before at least 2017, and that it has immediate access to liquidity of more than $12 billion. "The belief that Glencore is having a 'Lehman moment' seems unfounded," the broker said.