By Steve Goldstein
The rotation into the hardest-hit stocks from the COVID-19 pandemic continued for a second day in London, after the release of data showing a leading coronavirus vaccine candidate is 90% effective.
Cineworld (LON:UK:CINE) , the operator of closed cinemas on both sides of the Atlantic, surged 32%. Oil services firm Petrofac (LON:UK:PFC) , catering group SSP Group (LON:UK:SSPG) , engine maker Rolls-Royce (LON:UK:RR) and bus-and-rail operator FirstGroup (LON:UK:FGP) also posted double-digit percentage gains.
The FTSE 100 (FTSE:UK:UKX) , which surged close to 5% on Monday after the data from drugmaker Pfizer and its partner BioNTech, added another 1.2%.
Major oil companies BP (LON:UK:BP) and Royal Dutch Shell (LON:UK:RDSA) had another stellar day of gains to buoy the FTSE 100. AstraZeneca (LON:UK:AZN) shares rose 3% as the pharmaceutical, which with the University of Oxford is developing its own COVID-19 vaccine, said a late-stage trial of its severe-asthma drug met its goal of a statistically significant and clinically meaningful reduction in exacerbation.
Persimmon (LON:UK:PSN) , the U.K. home builder, fell 5%. Persimmon said business over the summer was “robust” and declared a second dividend, but it didn’t increase its guidance. Even with Tuesday’s decline, the stock is up nearly 10% over the last five days.