Bulletin
Investor Alert

New York Markets Open in:

London Markets Archives | Email alerts

Oct. 6, 2020, 9:03 a.m. EDT

Rolls-Royce climbs as aviation stocks rally in London

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Rolls-Royce Holdings PLC (RR)
  • X
    TUI AG (TUI)
  • X
    International Consolidated Airlines Group S.A. (IAG)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

The hard-hit aviation sector was in demand on the London Stock Exchange on Tuesday, as investors rotated into the losers and out of the winners of the year.

Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR -0.05% shares jumped 12%, a day after the company announced a £1 billion ($1.3 billion) convertible bond offering. It also won a contract in India to use its engines to power a gas-based power plant. Rolls-Royce stock has nonetheless lost 81% this year.

“Investors seem heartened that this could be the start of a long slow turnaround for Rolls-Royce, given the devastating impact the collapse in international travel had on its core aircraft engine manufacturing business,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Other travel-related stocks advancing including TUI /zigman2/quotes/207049334/delayed UK:TUI +1.74% , which rose 8%, International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -1.73% , which gained 6%, and easyJet /zigman2/quotes/202825892/delayed UK:EZJ -1.41% , which rallied 6%.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.32% overall edged up 0.4%, as gains for oil giants Royal Dutch Shell /zigman2/quotes/201538663/delayed NL:RDSA +0.21% and BP /zigman2/quotes/207305210/composite BP -2.06% helped offset losses for Ocado Group /zigman2/quotes/207225647/delayed UK:OCDO -0.23% , which slumped 5%, and Rentokil Initial /zigman2/quotes/207510108/delayed UK:RTO -0.41% , which fell 3% after Goldman Sachs downgraded the company to neutral from buy.

“While the company should also benefit from increased demand for its hygiene/deep cleaning services, which performed strongly in the second quarter, at 30x 2021E P/E (on our above Reuters consensus estimates), we believe this is broadly in the price,” the analysts said of Rentokil, as part of a broader look into the business services sector in Europe.

Elsewhere, Watches of Switzerland /zigman2/quotes/212606835/delayed UK:WOSG +0.31% surged 20% as the retailer hiked its annual sales and margin guidance, after better-than-expected 18% sales growth in the first 10 weeks of its fiscal second quarter.

/zigman2/quotes/203646520/delayed
UK : U.K.: London
108.25 p
-0.05 -0.05%
Volume: 16.03M
Nov. 27, 2020 11:35a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£9.28 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
525.20 p
+9.00 +1.74%
Volume: 804,028
Nov. 27, 2020 11:33a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.02 billion
Rev. per Employee
£250,630
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
161.80 p
-2.85 -1.73%
Volume: 11.96M
Nov. 27, 2020 11:33a
P/E Ratio
N/A
Dividend Yield
6.47%
Market Cap
£8.48 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
824.80 p
-11.80 -1.41%
Volume: 576,034
Nov. 27, 2020 11:33a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.77 billion
Rev. per Employee
£214,929
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,342.31
-20.62 -0.32%
Volume: 230,104
Nov. 27, 2020 11:35a
loading...
/zigman2/quotes/201538663/delayed
NL : Netherlands: Euronext Amsterdam
15.17
+0.03 +0.21%
Volume: 4.77M
Nov. 27, 2020 12:34p
P/E Ratio
N/A
Dividend Yield
3.61%
Market Cap
€116.17 billion
Rev. per Employee
€3.66M
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 21.41
-0.45 -2.06%
Volume: 14.15M
Nov. 25, 2020 7:00p
P/E Ratio
N/A
Dividend Yield
8.73%
Market Cap
$71.98 billion
Rev. per Employee
$3.99M
loading...
/zigman2/quotes/207225647/delayed
UK : U.K.: London
2,188.00 p
-5.00 -0.23%
Volume: 185,455
Nov. 27, 2020 11:33a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£15.93 billion
Rev. per Employee
£115,932
loading...
/zigman2/quotes/207510108/delayed
UK : U.K.: London
484.70 p
-2.00 -0.41%
Volume: 582,181
Nov. 27, 2020 11:34a
P/E Ratio
37.20
Dividend Yield
0.31%
Market Cap
£9.00 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/212606835/delayed
UK : U.K.: London
478.50 p
+1.50 +0.31%
Volume: 29,569
Nov. 27, 2020 11:35a
P/E Ratio
11,963
Dividend Yield
N/A
Market Cap
£1.14 billion
Rev. per Employee
N/A
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.