Rolls-Royce (RR.), Watches of Switzerland (WOSG) and Ashtead (AHT)
Rolls-Royce (RR.) shares rebounded 5 per cent on Tuesday as investors bought the dip which followed an airline customer reporting an engine component failure.
Cathay Pacific was forced to return a Zurich-bound flight to its Hong Kong base on Monday after reporting a failure on one of its Airbus A350 jets – all of which are powered by Rolls-Royce’s Trent XWB engines.
Rolls’ shares dropped by 6.5 per cent on Monday as Cathay Pacific began inspecting its fleet but then recovered after the airline said that parts on 15 planes would be replaced this week, with all planes likely to be back in service by Saturday. The airline is understood to be inspecting engine fuel lines, according to the Financial Times.
Rolls-Royce said it was providing support to Cathay Pacific and would “keep other airlines that operate XWB-97 engines fully informed of any relevant developments”. MF
Read more: Rolls-Royce is bringing back dividends
Watches of Switzerland up on lack of downgrade
Hitting expectations is sometimes all the market wants. Watches of Switzerland (WOSG) shares climbed 8 per cent after confirming guidance for the year would remain at a revenue increase of 9-12 per cent on a constant currency basis. The company said its first 18 weeks of the financial year, running from the end of April, had seen a “stabilisation” in the UK watch and jewellery market. The company is also boosting stock levels in the US.
Watches of Switzerland shares plummeted in January when “volatile” demand for high-end watches meant lower sales and margins. The market on Rolexes in particular turned as a rush to get hold of limited-supply models slowed down. AH
Read more: Will these fallen angels fly again?