The FTSE 100 lost 105.54 points to 5999.64 as investors digested gloomy reports on the virus’s spread, including one from the World Health Organization which said it was following up with Chinese authorities about a cluster of Covid-19 cases in Beijing. The outbreak has been linked to the city’s largest wholesale market.
Russ Mould, investment director at AJ Bell, said: “While the area around the market was quickly placed under lockdown, the sharp decline in equities on Monday would suggest that investors are fearful of similar outbreaks around the world as countries start to ease lockdown restrictions.”
Miners were among the biggest fallers on the blue-chip index, with Fresnillo down 35.4p, or more than 4%, to 758.p. BHP lost 60.8p to 1606.6p, and shares in Anglo American fell 55p to 1770.2p.
Amid the sell-off, just one FTSE 100 stock was on the rise. Distribution giant Bunzl proved a safe haven as it today reported that first-half revenues are expected to be up 6%.
Although much of its business in retail and hospitality has dried up, a brisk trade in supplying corporates with gloves, hand sanitiser and 2020’s must-have product — toilet toll — has helped sales.
Bunzl also distributes till roll to the nation’s grocers, which have seen the checkouts packed during the crisis. The stock moved up 6% or 115p to 1999p.
Shares in Clinigen improved slightly, up 6.7p to 828.7p, following weekend reports that the pharmaceutical business was recently a potential takeover target.
Advent International, the buyout firm that earlier this year completed a purchase of defence company Cobham, has reportedly been working with Goldman Sachs and HSBC on a debt package with a view to submitting a £1.5 billion offer for Clinigen. The talks are not understood to be ongoing.
Investors lost their appetite for Cake Box. Although the bakery chain saw revenues for the year to March increase 10.8% to £18.7 million, profits came in slightly below expectations at £3.8 million. The company, which has opened almost all of its 133 stores with a limited menu and said 75% of its sites are currently trading at pre Covid-19 levels, saw shares decrease by 1.8p to 160.8p.
