(Alliance News) - Stock prices in London opened lower on Monday as coronavirus continued to spread worrisomely, while NMC Health shares surged on takeover interest.
The head of the World Health Organisation warned confirmed cases of coronavirus being transmitted by people who have never travelled to China could be the "tip of the iceberg".
Tedros Adhanom Ghebreyesus' remarks come as members of a WHO-led "international expert mission" flew to China on Monday to help coordinate a response to the outbreak that has so far infected more than 40,000 people and killed 908 in the country.
"There've been some concerning instances of onward #2019nCoV spread from people with no travel history to (China)," Ghebreyesus tweeted Sunday, using the virus's provisional scientific name.
Analysts at ThinkMarkets said: "Containment efforts and quarantine measures are stepping up globally, but the Asia region clearly remains on edge. What's contributed to the regain of confidence has been a market narrative which seems centred around the fact that the pace of new infections are slowing and the recoveries/death ratio is improving. Although, we'd argue the virus is more nuanced than just that. For one, confirmed cases of over 40k are still edging along.
"Mix that in with instances of transmission to those with no travel history to China, and the fact that only a small proportion of the workforce is likely returning, and suddenly, circumstances seem a bit more vulnerable than at first glance."
The internationally exposed FTSE 100 index was down 15.80 points, or 0.2% at 7,451.57.
The more UK domestic-oriented FTSE 250 was down 17.50 points, or 0.1% at 7,451.57, and the AIM All-Share flat at 949.97.
The Cboe UK 100 index was down 0.2% at 12,622.20. The Cboe UK 250 was flat at 19,367.66, and the Cboe UK Small Companies was flat at 12,495.40.
In European equities, the CAC 40 in Paris was down 0.4% and the DAX 30 in Frankfurt down 0.2%.
On the London Stock Exchange, NMC Health opened as the standout performer, up 12%. The UAE-focused private healthcare firm confirmed it received "highly preliminary approaches" from private equity firms Kohlberg Kravis Roberts & Co and GK Investment Holding Group, regarding possible offers.
The Mail on Sunday had reported that KKR had held talks with NMC Health senior executives in the past few weeks. GK Investment, which has made a separate approach to NMC Health, is a Switzerland-based investment company.
NMC Health shares had closed down 22% on Friday in London and are down almost 60% so far in 2020. The company's current market capitalisation of GBP1.46 billion compares to GBP5.5 billion a year ago.
NMC said no proposal has been made by either KKR or GK, and there have been no discussions as to the terms of any possible offer. Further, "there can be no certainty that any offer will be made", NMC added.
At the other end of the large cap index, Whibread was the worst performer, down 2.0% after Goldman Sachs downgraded the Premier Inn chain owner to Sell from Neutral.
Elsewhere, intu Properties was up 7.2% after the shopping mall operator confirmed plans to raise equity at the end of February when its 2019 financial results are released.
intu made the statement after the Sunday Times reported Asian property firm Link Real Estate Investment Trust was to "ride to the rescue" of intu.
The company on Monday confirmed Link Real Estate, which is listed in Hong Kong, was part of the negotiations, which would see it become a new shareholder in intu.
The Japanese Nikkei 225 index closed down 0.6%. In China, the Shanghai Composite ended up 0.5%, while the Hang Seng index in Hong Kong closed down 0.7%. Japanese financial markets will be closed on Tuesday for a public holiday.
China consumer prices rose at their fastest pace in more than eight years, official data showed Monday, with inflation rising more than expected on the back of Lunar New Year demand and the deadly virus outbreak.
Beijing had already been battling a slowing domestic economy before the new coronavirus emerged, disrupting businesses, travel and supply chains.
On an annual basis, consumer price index rose 5.4% in January, accelerating from 4.5% in December - with prices of pork and fresh vegetables pushing up costs.
The pound was quoted at USD1.2879 Monday morning, down from USD1.2907 at the London equities close Friday.
The euro was quoted at USD1.0947 Monday, flat from USD1.0948 late Friday.
Against the yen, the dollar was trading at JPY109.76, flat from JPY109.75 late Friday.
Brent oil was quoted at USD54.16 a barrel Monday, down from USD54.86 at the London equities close Friday.
Gold was quoted at USD1,572.57 an ounce Monday, firm against USD1,567.40 late Friday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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