* FTSE 100 down 1.3%, FTSE 250 down 0.7%
* Britain to exit the EU at 2300 GMT
* Aston Martin roars to top of midcap bourse
* French Connection, M&C Saatchi fall steeply
(Updates to closing prices, adds news items)
By Shashwat Awasthi and Muvija M
Jan 31 (Reuters) - London's FTSE 100 tumbled to a seven-week
low on Friday as the first cases of coronavirus in Britain
fanned concerns over the economic impact to the country, which
is set to leave the European Union later in the day.
The main index gave up 1.3%, capping off its worst
weekly performance in over a year, while the FTSE 250
handed back earlier gains to close 0.7% lower.
After the World Health Organization (WHO) declared a global
emergency over the China-linked virus, news that two patients
had tested positive for coronavirus kept investors firmly away
from risky assets.
"Dealers are dumping stocks for fear the health crisis will
curtain economic activity in China, and to a lesser extent the
rest of the world – should the situation keep spreading," CMC
Markets analyst David Madden wrote.
Both British benchmark indexes shed more than 3% this month.
At home, the Bank of England's decision to keep interest
rates unchanged supported sterling and hammered firms that earn
largely in U.S. dollars.
HSBC, BP and Shell were among the
biggest drags on the index.
Investment platform Hargreaves Lansdown was the
biggest loser on the blue-chip bourse, dropping 8.2% as
half-year results showed a slowdown in net new business growth.
A noteworthy gainer across the board was luxury carmaker
Aston Martin, which soared 24% on its best ever day
after Canadian billionaire Lawrence Stroll said he would take a
stake in the company.
News-related moves spurred sharp declines among smaller
stocks.
French Connection, the owner of Great Plains and
YMC brands, tanked 31% - its steepest one-day drop on record -
after it dropped plans to sell itself and said it would instead
focus on a turnaround.
M&C Saatchi slid 10% as Britain's financial watchdog
began a probe after the advertising agency revealed an
accounting scandal last year, while fashion retailer Laura
Ashley slumped 8% after its top boss stepped down.
AIM-listed Staffline stumbled 14% after the
recruiter issued yet another profit warning.
"Given the lack of asset backing in the business, we expect
that the banks will seek (Staffline) management to realise cash
through disposals or find other sources of finance," Liberum
analysts said.
(Reporting by Shashwat Awasthi and Muvija M in Bengaluru;
Editing by Bernard Orr, Shounak Dasgupta and Frances Kerry)
