August 24, 2016 / 9:02 AM / 2 years ago

European shares gain, though Glencore leads miners lower

* STOXX 600 up 0.1 pct

* Glencore drops following update

* SCA soars after plans for split

* WPP jumps after beating results forecast (Recasts, adds detail and quotes, updates prices)

By Kit Rees

LONDON, Aug 24 (Reuters) - European shares rose on Wednesday, lifted by gains in Sweden’s hygiene product maker SCA and British advertising group WPP, though an update from miner Glencore dragged the mining sector lower.

The pan-European STOXX 600 index advanced 0.1 percent, recouping losses from earlier on in the session and on track for its third straight session of gains. Volumes were light.

British miner Glencore dropped 4.9 percent after reporting a fall in underlying profit and lowering its debt target.

“At certain levels (Glencore) may look pretty attractive for entry for a buy, however at this point in time after the rally that it’s seen, this report doesn’t really warrant a leg higher in the share price,” Jonathan Roy, advisory investment manager at Charles Hanover Investments, said.

Europe’s Basic Resources index fell 1.7 percent, hit by copper prices stuck near six-week lows.

South Africa-exposed stocks such as Investec and Old Mutual both fell after South Africa’s finance minister was summoned by police, sending the rand tumbling.

But shares in Sweden’s SCA hit a record high, soaring over 10 percent after announcing plans to split into two listed firms.

Britain’s WPP also hit a record high, gaining 5.5 percent after the advertising company beat first-half net sales forecasts.

“We are encouraged by the positive trading performance and operational momentum revealed in this morning’s results. We remain bullish on WPP’s ability to capitalise on a solid medium-term outlook for global advertising spend,” Roddy Davidson, analyst at Shore Capital Markets, said in a note. (Editing by Raissa Kasolowsky)

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