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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 RR, -8.81%, 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 EZJ, +4.45% 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 RYA, -1.54% and Wizz Air WIZZ, -3.31%, though a faster recovery could make easyJet an attractive investment as well.
The analysts said it was too soon to consider Air France-KLM AF, +0.63% or Lufthansa LHA, +1.98%.
More broadly, the FTSE 100 UKX, +1.08% rose over 1%, continuing this week’s advance on the prospect of both the domestic and global economies reopening.
Movie theater operator Cineworld CINE, +23.83% 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.
