Source: Sharecast
The FTSE 100 was down 4.2% at 5,074.98. Meanwhile, sterling was down a whopping 1.4% against the dollar at 1.1885 and hitting its worst level since 1985.
Joshua Mahony, senior market analyst at IG, said: "The recent fiscal and financial boost already starting to wane. While the announcement of supportive measures has sidetracked traders for a short period of time, such boosts will only provide a brief reprieve from the overwhelming sense of fear over exactly how this virus will impact the economic landscape.
"The Chancellor’s promise of £330 billion worth of funding helped alleviate some of the fears of an economic collapse while economies go into lock-down. However, while these measures can help mitigate the likeliness that businesses will fold, it also raises the prospect of a post-virus world where firms are lumbered with huge debt burdens."
Good news first. Amid all the doom and gloom, supermarkets were a bright spot, with Sainsbury’s the standout gainer on the top-flight and Morrisons close behind after the Chancellor said the government would be giving all retail, hospitality and leisure businesses in England a 100% business rates holiday for the next year.
Morrisons also got a boosted by after reporting a rise in full-year pre-tax profit and a jump in recent like-for-like sales thanks to stockpiling. Sainsbury’s, meanwhile, announced a series of measures to help deal with panic-buying.
Mahony said: "The supermarket sector has swiftly switched from being one of price competition and declining margins, to the haven sector which appears bulletproof as the UK restricts movement. While a France-style shutdown would likely hit UK markets given the economic implications, traders will no doubt be looking for the benefactors given that pharmacies and supermarkets will remain open and in high demand."
On the FTSE 250, Cineworld, Marston’s and Wetherspoons all racked up solid gains. Cineworld announced the closure of its cinemas on Tuesday, while Marstons said earlier that it was unlikely to pay a dividend this year as it tried to save cash and protect its balance sheet from the impact of the coronavirus and government advice for people to avoid pubs and restaurants.
On the downside, rental equipment firm Ashtead slumped.
Engineering firm Meggitt and aerospace and defence group Rolls-Royce were weaker. In a note on the aerospace and defence sector, Credit Suisse said aftermarket activities are likely to be temporarily halted as airlines try to conserve cash by any means possible. "This will compound any production rate decision by the airframers," it said, adding that stocks in its coverage exposed to aftermarket are Rolls-Royce and Meggitt.
Transport operator National Express was the biggest loser on the FTSE 250.
Market Movers
FTSE 100 (UKX) 5,074.98 -4.15%
FTSE 250 (MCX) 13,261.36 -4.76%
techMARK (TASX) 2,956.48 -2.53%
FTSE 100 - Risers
Sainsbury (J) (SBRY) 210.40p 9.58%
Kingfisher (KGF) 133.45p 7.58%
Morrison (Wm) Supermarkets (MRW) 192.50p 6.74%
Reckitt Benckiser Group (RB.) 6,040.00p 5.43%
Vodafone Group (VOD) 113.08p 4.98%
BT Group (BT.A) 127.00p 4.79%
Sage Group (SGE) 591.00p 2.14%
Standard Chartered (STAN) 465.00p 1.86%
Flutter Entertainment (FLTR) 5,738.00p 0.63%
Admiral Group (ADM) 2,245.00p 0.58%
FTSE 100 - Fallers
Ashtead Group (AHT) 1,313.50p -22.51%
Meggitt (MGGT) 254.80p -19.32%
Rightmove (RMV) 421.60p -16.32%
Rolls-Royce Holdings (RR.) 330.90p -14.83%
Carnival (CCL) 819.00p -13.11%
Next (NXT) 3,755.00p -12.18%
London Stock Exchange Group (LSE) 5,424.00p -12.15%
Barratt Developments (BDEV) 396.90p -11.80%
Melrose Industries (MRO) 112.75p -11.78%
easyJet (EZJ) 527.40p -11.48%
FTSE 250 - Risers
Cineworld Group (CINE) 33.29p 55.71%
Marston's (MARS) 31.24p 40.72%
Telecom Plus (TEP) 1,196.00p 16.57%
Marks & Spencer Group (MKS) 106.40p 15.25%
Aston Martin Lagonda Global Holdings (AML) 190.00p 11.76%
Royal Mail (RMG) 162.65p 9.49%
Sabre Insurance Group (SBRE) 242.00p 9.26%
Bakkavor Group (BAKK) 70.00p 8.70%
Wetherspoon (J.D.) (JDW) 711.00p 8.22%
AJ Bell (AJB) 273.00p 8.12%
FTSE 250 - Fallers
National Express Group (NEX) 81.15p -38.15%
Wood Group (John) (WG.) 145.50p -21.75%
SSP Group (SSPG) 165.60p -21.52%
Travis Perkins (TPK) 648.00p -19.02%
Intermediate Capital Group (ICP) 674.00p -18.75%
IWG (IWG) 120.35p -18.52%
Elementis (ELM) 20.64p -17.44%
Bodycote (BOY) 434.20p -16.74%
FDM Group (Holdings) (FDM) 529.00p -16.69%
Future (FUTR) 665.00p -15.93%
