UK stocks sink another 2.4% as coronavirus spread persits

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

UK stocks opened sharply lower on Friday continuing a broader global market rout driven by a spread of coronavirus to dozens of countries that has triggered multiple corporate profit warnings.

At 0821, the benchmark FTSE 100 index was down 152.44 points, or 2.4%, at 6.643.96.

British-Airways owner International Consolidated Airlines dropped 5.7% to 486.2p as it reported a flat annual profit and warned the coronavirus would cut flying capacity in 2020.

Budget rival Easyjet descended 3.4% to £10.725 on announcing that it would consider suspending some flights amid softening demand across European routes, including in Northern Italy.

Engineering company Rolls-Royce bucked the trend, gained 2.7% to 617p, having narrowed its annual losses, as it continued to work through a sweeping restructure plan and recover from faulty aircraft-engine issues.

British bourse operator London Stock Exchange shed 1.3% to £77.10 after it reported a fall in profit, despite an uptick in revenue that was offset by acquisition-related expenses.

Premier Inn hotel chain owner Whitbread dropped 2.5% to £39.71 as it completed the acquisition 19 hotels in Germany from Foremost Hospitality, for an undisclosed sum.

Defence and aerospace engineer Meggitt reversed 2.6% to 541.4p, despite winning a $73m contract from Bell Textron for the supply of ice protection components to the V-22 Osprey military aircraft.

Industrial chains and power transmission equipment group Renold slumped 21% to 10p on warning the coronavirus outbreak would chop £1m from its annual operating profit.

Luxury furniture group Walker Greenbank dropped 4.8% to 70p, even as it announced that its Clarke & Clarke brand was collaborating with TV personality Tess Daly on her homewares collection.