BUZZ-Rolls Royce: sector rotation boost
** Rolls Royce (LSE: RR.L - news) enjoys brief stint at top of FTSE 100 & up at 4-mth highs, rallying with peers as defence sector falls into focus after BAE Systems (LSE: BA.L - news) reports FY
** One UK-based trader said sector rotation was at play
** While BAE up 19 pct over the past 12 mths, investors in RR have had a rough ride & shares still down 19 pct since a profit warning this time last yr, blamed on declining US & European military budgets
** RR rises 2.2 pct & for BAE, profit-taking after results proves short-lived on Thurs as stock bounces back from 4.4 pct slide to trade near highs of the day
** One London-based analyst cites headlines relating to BAE's optimism over US military spend next yr as the catalyst for BAE's rally
** Of the stocks, Galvan's head of trading Ed Woolfitt says he would choose RR over BAE as underperformance narrows
** Smaller peer Meggitt (Other OTC: MEGGF - news) up 1.3 pct (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)