Coronavirus test lifts minnow’s shares 33pc
INVESTORS snapped up shares in biotechnology minnow Novacyt as the coronavirus edged closer to becoming a pandemic.
AIM-listed Novacyt is selling a test for the infection that delivers a result in two hours and doesn’t need a doctor to oversee it.
It was the first company to receive an approval for a Covid-19 test, meaning it complies with EU health and safety rules.
Novacyt has not revealed how many units of the test, which is designed and made in Southampton, it has sold so far.
But as the company received a whopping 288,000 inquiries after the news was announced, traders are betting it will be in high demand after the number of global cases topped 77,000, northern Italy went into lockdown and worrying outbreaks emerged in South Korea and Iran.
Its share price tailed off from a high of 166p last week as data over several days showed the spread of the flu-like virus was dropping in
China. But its stock surged 33.3pc, or 35p, to 140p last night as outbreaks gained steam elsewhere.
A fellow junior market-listed group, disinfectant maker Tristel, also made gains as analysts said there was the potential for it to benefit from a ‘Covid-19 bonus’.
It closed 10.8pc, or 42.5p, up at 437.5p, as it also posted financial results that showed its profit rose in the first half, beating expectations to rise 27pc to £2.8m in the six months to December 31. But FTSE 100-listed drug maker
Glaxosmithkline, however, failed to be boosted by a collaboration with a Chinese firm to develop a potential coronavirus vaccine.
Glaxo will give Clover Biopharmaceuticals
access to ingredients that stimulate an extra immune response, which can help provide immunity for longer and at a stronger rate when compared to just a vaccine alone. But Glaxo fell 1.7pc, or 28.4p, to 1629.8p.
Worries about the effect on companies and countries almost across the board meant there were few bright spots in London, with mining companies and airlines hammered especially hard.
The FTSE 100 lost 3.34pc, or 247.09 points, to close at 7156.83, while the mid-cap FTSE 250 index shed 3.04pc, or 662.33 points, to close at 21,117.87.
One of the few companies staying out of the red was Ascential, which rose 3.8pc, or 13.6p, to 367.6p. Profits at the business data provider and marketing firm, which owns political intelligence brand De Havilland, fell 65pc to £10.2m as it spent big.
But revenue rose 19pc to £416m on the back of acquisitions, while investors also welcomed news of a £120m share buyback.
Business supplier Bunzl also rose – by 2.7pc, or 52.5p, to 2001p – as the takeover-hungry group bought outfits in Brazil and Denmark and flagged that more are in the pipeline. It sells products that companies need to do business but do not sell directly to customers, such as cleaning equipment, food packaging and hard hats.
Revenue edged 2.7pc higher to £9.3bn, while profit before tax rose from £423m to £453m in 2019. Irish support services group
DCC has hired outgoing BP executive Tufan Erginbilgic, who heads its downstream business until the end of March, as a non-executive director. He will join on April 6. DCC fell 4.3pc, or 270p, to 5982p. Blue- chip publishing group
Pearson made gains as buyers picked up shares at a cheaper price. It fell on Friday after it said its US education unit was weighing on profits. But it rebounded 3.2pc, or 18.2p, to 579.6p.
And Botswana Diamonds rocketed 19.4pc, or 0.15p, up to 0.93p, after drilling found kimberlite at a project – it is a type of rock that sometimes contains diamonds.