(Editor’s note: This item was released by MarketWatch between 5:31 p.m. ET on October 5th and 11:40 a.m. ET on October 6th, but wasn’t published at that time due to technical issues.)
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 shares jumped 12%, a day after the company announced a GBP1 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.