By Steve Goldstein, MarketWatch
Rolls-Royce was the worst performing of the U.K. blue chips on Thursday, as a hedge fund sold its stake in the engine maker.
AKO Capital disclosed it sold its 5.2% stake in Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR -4.30% , sending shares 8% lower.
Even with the slide, Rolls-Royce stock is up some 10% over the last five days, as the aviation sector has rebounded on the easing of European travel restrictions in countries including Germany and Spain.
EasyJet shares /zigman2/quotes/202825892/delayed UK:EZJ +2.00% rose 4% as the no-frills carrier said winter bookings were ahead of last year’s. It also announced plans to cut up to 30% of its staff and said it expects to fly at 30% of its capacity in the September-ending fiscal fourth quarter.
In a note on the European airline sector, Morgan Stanley said it continues to see a better risk-reward in Ryanair /zigman2/quotes/202851567/delayed UK:RYA +1.06% and Wizz Air /zigman2/quotes/210449062/delayed UK:WIZZ +0.85% , though a faster recovery could make easyJet an attractive investment as well.
More broadly, the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.23% rose over 1%, continuing this week’s advance on the prospect of both the domestic and global economies reopening.
Movie theater operator Cineworld /zigman2/quotes/206525056/delayed UK:CINE +2.51% surged 23% as it said it has negotiated a covenant waiver, increased its revolving credit facility, and made plans to tap U.S. and U.K. government lending programs. Cineworld currently anticipates that government restrictions related to cinemas will be lifted in each of its territories by July, but said it has sufficient headroom even in the unlikely event cinemas remain closed until the end of the year.