By Steve Goldstein
Investors poured into the beleaguered sectors on Monday in London, after Pfizer said the coronavirus vaccine it is developing has a more than 90% success rate.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.08% surged close to 6% in late trade after the news from drugmaker Pfizer /zigman2/quotes/202877789/composite PFE +0.71% and its partner, biotechnology company BioNTech /zigman2/quotes/214419716/composite BNTX +10.15% . That is the best single day of gains for the FTSE 100 since the 9.1% surge on Mar. 24.
“Following on from the Biden Bounce, the markets have been injected with a big dose of vaccine vigor with investors spotting a ray of light through the clouds, optimistic that the pandemic will finally subside,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Breathtaking gains of 57% by engine maker Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +2.75% highlighted a so-called “dash for trash,” with investors snapping up the companies that have struggled during the pandemic. Huge gains also were seen by International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -1.57% , shopping-center owner British Land /zigman2/quotes/210491538/delayed UK:BLND +1.68% , and conference organizer Informa /zigman2/quotes/207253704/delayed UK:INF -1.18% .
Heavyweight banks and oil explorers sported double-digit gains, with BP /zigman2/quotes/202286639/delayed UK:BP +0.69% and Barclays /zigman2/quotes/208409333/delayed UK:BARC +2.16% each surging 15%. There were losers, too, with miner Fresnillo /zigman2/quotes/201300065/delayed UK:FRES +1.01% and food delivery groups Ocado /zigman2/quotes/207225647/delayed UK:OCDO -0.18% and Just Eat Takeaway /zigman2/quotes/216303066/delayed UK:JET -3.33% skidding by at least 10%.
Outside the FTSE 100, big gainers included catering company SSP /zigman2/quotes/205370875/delayed UK:SSPG -0.68% and cinema operators Everyman Group /zigman2/quotes/209653442/delayed UK:EMAN -2.50% and Cineworld /zigman2/quotes/206525056/delayed UK:CINE +4.09% .