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(Alliance News) - Stocks in London ended Monday in negative territory with coronavirus concerns and a strengthening pound hurting the internationally exposed FTSE 100 index.
The large cap index closed down 19.82 points, or 0.3%, at 7,446.88. The FTSE 250 ended down 5.97 points at 21,493.32, and the AIM All-Share closed 0.41 of a point lower at 961.53.
The Cboe UK 100 ended down 0.3% at 12,613.29, the Cboe UK 250 closed flat at 19,377.46, and the Cboe Small Companies ended down 0.8% at 12,395.31.
"The FTSE was marginally the worst performer, falling 0.4% due to the weight of its commodity and banking stocks, alongside sterling's rebound. Against the dollar sterling was up 0.4%, lifting off of last Friday's two-month-plus lows," said Spreadex Financial Analyst Connor Campbell.
The pound was quoted at USD1.2922 at the London equities close Monday compared to USD1.2907 at the close on Friday.
"The pound may find its rebound tested on Tuesday morning," noted Campbell.
In the economic calendar on Tuesday, there is UK monthly GDP estimates at 0930 GMT. The reading is forecast to bounce from negative 0.3% to positive 0.2%, alongside estimated recoveries for the manufacturing and industrial production figures.
In European equities on Monday, the CAC 40 in Paris and the DAX 30 in Frankfurt both ended 0.2% lower.
The euro stood at USD1.0920 at the European equities close Monday against USD1.0948 at the same time on Friday. Against the yen, the dollar was trading at JPY109.76 compared to JPY109.75 late Friday.
A group of major oil-producing countries should reduce their output even more until June as the coronavirus is dampening global energy demand, they said on Monday, summing up their recent talks in Vienna.
A committee that advises the 14 members of the Organization of the Petroleum Exporting Countries and 10 additional countries including Russia is recommending "a further adjustment in production until the end of the second quarter of 2020," on top of the production curbs that are already in place.
"The coronavirus epidemic is having a negative impact on economic activities, particularly on the transportation, tourism and industry sectors, particularly in China, and also increasingly in the Asian region and gradually in the world," said Algerian Energy Minister Mohamed Arkab, who currently serves as OPEC president.
Brent oil was quoted at USD53.58 a barrel at the London equities close Monday from USD54.86 late Friday.
Elsewhere in the commodity space, gold was quoted at USD1,574.80 an ounce at the London equities close Monday, higher against USD1,567.40 at the close on Friday.
On the London Stock Exchange, NMC Health was the standout performer, closing 32% higher. The UAE-focused private healthcare confirmed it has 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 US-based 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 on Monday 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.
Back in December, US short selling firm Muddy Waters Capital accused NMC of manipulating its balance sheet to understate debt, which the company firmly denied.
On Monday, Muddy Waters said: "Today's bizarre disclosures about even more pledges and debt validate that the cockroach theory is alive and well - what we found is likely just the tip of the iceberg. As for the notion that NMC might receive private equity bids, it's hard for us to believe they would survive due diligence."
At the other end of the large-cap index, Whitbread was down 0.3% after Goldman Sachs downgraded the Premier Inn chain owner to Sell from Neutral.
Among the mid-caps, intu Properties closed up 29% 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 Lakeside shopping centre owner 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 company said talks with existing shareholders including Peel Group are "constructive". Peel Group, which owns 27% of intu, is owned by businessman John Whittaker.
Elsewhere, Panther Metals closed 58% higher after securing an exploration permit at the Annaburroo gold project in Australia.
Chief Executive Officer Darren Hazelwood said: "The grant of the Annaburroo gold project license allows the company to proceed with its maiden exploration programme on its fully-owned gold exploration projects in the Northern Territory."
Grab samples at the asset have found gold grades of 61.2 grammes pet tonne and 50.8 grammes per tonne.
Hazelwood added that he expects the exploration programme to begin in the second quarter of 2020.
Stocks in New York were in the green at the London equities close, with the Dow Jones up 0.3%, the S&P 500 index rising by 0.4%, and the Nasdaq Composite up 0.5%.
Meanwhile, US President Donald Trump will propose cutting billions of dollars in foreign aid in his fiscal 2021 budget, to be released on Monday.
The budget plan is expected to request USD2 billion in homeland security spending for the US-Mexico border wall, with the summary reportedly saying 400 miles of wall would be completed by the end of 2020. The proposed budget will go before Congress, which is not required to agree to the White House's requests.
According to Bloomberg News, the USD4.8 trillion plan includes USD740.5 billion for military and a 5% cut in non-defense spending.
On Tuesday afternoon, at 1500 GMT, US Fed Chair Powell presents Monetary Policy report to House Financial Services Committee.
In Tuesday's corporate calendar, there are annual results from online grocer Ocado Group and first-quarter results from travel company TUI. Driving lessons and road services provider AA will provide a trading statement.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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