Footsie down as fears over virus persist

The FTSE 100 slid into the red as a week characterised by a significant rebound in the wake of the coronavirus outbreak finished with a stumble.

The London top flight closed 38.09 lower at 7,466.7 at the end of trading. Connor Campbell, financial analyst at Spreadex, said: “Though there is clearly an appetite to keep pushing the Western indices higher, at the same time the coronavirus outbreak is far from dealt with.

“In light of that the highs – in some cases all-time -the market galloped to on Thursday appear quite fragile, perhaps even naive, hence the selling seen on Friday.”

The FTSE 100 was the worst hit of the major indices across Europe as it was also weakened by a rebound in the value of the pound.

Burberry investors remained subdued despite the company revealing it has shut 24 of its 64 stores in mainland China as fears over a growing coronavirus outbreak continue to grip the country.

The company said it was taking action to ensure that staff remained safe. But it warned investors that the outbreak was having a “material negative effect” on demand. Shares in the company dipped 2p to 2,015p.

Elsewhere, housebuilder Bellway said it had built a record number of new homes in the first six months of the financial year. It said that 5,321 homes were finished in the half, a 6.3 per cent rise on the year before. Shares closed the day 32p lower at 4,032p.

Tui bounced by 12.8p to 863.6p as the holiday firm confirmed it was set to bank £593 million after selling its cruises business.