The expectation of market watchers is that vaccine development would herald a recovery of the global economy.
Airline and casino stocks reacted to the news of a potential vaccine for coronavirus on Tuesday. Asia-Pacific markets are the first to feel the impact of the possible development of a vaccine for the pandemic that has affected the industries and had a massive impact on the global economy.
On the other hand, stock of companies related to “sit-at-home” have not fared as well with the prospect of things brightening up with a potential cure for the disease.
The chief investment officer of Citi Private Banks David Bailin told financial reporters that the expectation at this moment is a turnaround from the focus of staying at home to the more outdoor stocks, including airline and casino ones, as the situation improves regarding the outbreak.
Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) vaccines are among the most viable after months of development from pharmaceutical companies. It is not surprising that the news has led to a surge in the value of airline and casino stocks, considering that these were among the worst hit by global lockdowns at the peak of the pandemic.
The expectation of market watchers is that vaccine development would herald a recovery of the global economy. According to Bailin, “hotel stocks, casinos, airlines, all of those really are … now back in play.”
Some Asia-Pacific airline stocks that have made remarkable gains are Qantas Airways (OTCMKTS: QABSY) which rose by 8.33%, Cathay Pacific Airways (OTCMKTS: CPCAY) rose by 14.06%, China Eastern Airlines Corp. Ltd (NYSE: CEA) made gains of 7.93%, while Japan Airlines (OTCMKTS: JAPSY) gained 21.21%. Others are ANA Holdings (OTCMKTS: ALNPY) with a 18.06% rise, Korean Air Lines Co Ltd (KRX: 003490) – 11.24%, and Singapore Airlines (OTCMKTS: SINGY) -13.99%.
Among casino stocks in Hong Kong, there was an appreciable rise in the value of Wynn Macau Ltd (OTCMKTS: WYNMF) shares which rose by 9.95%. Another casino stock, Melco International Development Ltd (OTCMKTS: MDEVF) saw higher values with a gain of 6.84%. Crown Resorts (OTCMKTS: CWLDY) made gains of 4.6% in Australia.
Another indication that this is all about the pandemic and the vaccine could be seen with the gains in the oil sector. Santos Ltd (TCMKTS: SSLZY) gained 12.18% in Australia, while 4.61% was gained by Japan Petroleum Exploration Co Ltd (TYO: 1662). PetroChina Company Limited (OTCMKTS: PCCYF) and CNOOC Ltd (NYSE: CEO) gained 6.44% and 13.96% respectively.
Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.
