Sector movers: Rotation into value stocks continues

Investors continued to pick up issues in so-called 'value' sectors at the start of the week, as they were arguably trading at too steep a discount to their estimated fundamental value going forwards given news of another breakthrough in efforts to develop a vaccine against Covid-19.

In particular, investors continued to rotate into oil-related stocks.

Aerospace issues such as engineer Rolls Royce were also in demand, on expectations that a recovery in air travel might be nearer on the horizon than previously thought.

Mobile telecommunications issues were also wanted in the wake of the latest update from Vodafone, which kept its interim dividend and guided towards broadly flat full-year profits.

Earlier in the session, US biotechnology outfit Moderna announced a 94.5% efficacy rate for its vaccine candidate on the basis of an interim analysis of its late stage clinical trials.

Not only is such a degree of efficacy remarkable in and of itself, the vaccine's stability meant that it could reportedly be stored in normal freezers, making it easier to distribute, both in the US and globally.

The third stage clinical trial also showed that no volunteers dosed with the vaccine had thus far developed severe forms of Covid-19.

Top performing sectors so far today

Oil Equipment, Services & Distribution 5,525.56 +8.03%

Mobile Telecommunications 2,924.02 +6.53%

Oil & Gas Producers 4,340.10 +6.13%

Aerospace and Defence 3,520.56 +4.91%

Beverages 23,787.79 +4.50%

Bottom performing sectors so far today

Leisure Goods 24,081.25 -1.93%

Technology Hardware & Equipment 2,050.67 -1.89%

Personal Goods 38,796.61 -1.85%

Household Goods & Home Construction 17,709.95 -0.53%

Gas, Water & Multiutilities 5,127.11 -0.50%