Coronavirus concern hits share prices

The FTSE 100 bounce since the decisive election victory for the Conservatives last month was wiped out yesterday as fears over the coronavirus spread.

Shares on the blue-chip index closed the day down 101.61 points, off 1.36%, at 7381.96 – the lowest since polling day on December 12. Traders were also not helped by the Bank of England’s decision to hold interest rates at 0.75% – sending the pound up 0.65% to 1.311 dollars. It was also up against the euro by 0.5% to 1.188 euros.

David Madden, market analyst at CMC Markets, said: “Coronavirus fears are back at the forefront of traders’ minds, hence why stocks have fallen.”

European indexes suffered equally hard, with the German Dax and French Cac both down by 1.4%.

In company news, British Airways confirmed it would ground flights serving mainland China until at least the end of next month due to the government’s coronavirus travel advice. Shares closed down 19.6p, or 3.3%, to 572.4p.

Cruise operator Carnival also suffered a fall in shares, down 170p to 3,168p, as reports said passengers on one of its ships in Italy may have the virus.

At Unilever, investors were pleased with plans from the company to look at selling its PG Tips brand, . Shares closed up 89.5p, or 2%, at 4,527.5p.

Biggest risers on the FTSE 100 were Unilever up 89.5p at 4,527.5p and Whitbread up 82p at 4,553p. Among the biggest fallers were Carnival down 170p at 3,168p, Royal Dutch Shell ‘A’ shares down 93p at 2,038p, and Royal Dutch Shell ‘B’ shares down 78.5p at 2,046p.