[miningmx.com] – GLENCORE non-executive director, John Mack, blamed the wild swings in the Swiss firm’s share price earlier this month on short sellers, adding that their activity was not “real investing”.
In an interview with Bloomberg TV, Mack – formerly head of Morgan Stanley – said short sellers were “playing” with CDS [credit default spreads], adding: “That’s fine for them to do that but that creates a lot of volatility. It’s not real investing”.
Glencore fell a record 29% September 28 – equal to about $6bn in market capitalisation – on concerns slumping commodity prices would erase the value of its equity. It then recovered all of its losses and more in the following five days.
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