Retailers' shares boosted by positive COVID-19 vaccine news
Shares in retailers received a welcome boost today, as those in pureplay etailers fell, following positive news of a COVID-19 vaccine.
JD Sports, Superdry and Marks & Spencer were among those to see a leap in their shares, while those in ASOS and Boohoo dipped, following news that Pfizer and its partner BioNTech claimed their COVID-19 vaccine had proven to be 90% effective, with no adverse side effects, following tests on 43,500 people in six countries.
The FTSE 100 jumped more than 5.5% on the news with retailers receiving a significant boost. At the time of writing JD Sports shares had leapt by 8.23%, Superdry by 13.61%, Marks & Spencer by 16.5%, Primark parent Associated British Foods by 17.85% and Joules by 14.83%.
Despite news that online sales are set to jump by 35-45% this Black Friday, etailers shares dipped on the news of the vaccine with Boohoo down -3.79% and ASOS down -7%.
Upon announcing the news Dr Albert Bourla, Pfizer chairman and chief executive, said: “Today is a great day for science and humanity.”
However, while Downing Street welcomed the news, it sounded a cautious note. “The results are promising and while we are optimistic of a breakthrough, we must remember there are no guarantees," the Prime Minister's spokesperson said.
About 12 COVID-19 vaccines around the world are currently in the final stages of testing, but Pfizer’s is the first to report any results.
Pfizer's Dr Bourla said: “The first set of results from our Phase three COVID-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent COVID-19.”
He added: “We will continue to collect further data as the trial continues to enrol, for a final analysis planned when a total of 164 confirmed COVID-19 cases have accrued.
“I would like to thank everyone who has contributed to make this important achievement possible.”
Peter Horby, professor of emerging infectious diseases and global health at the University of Oxford, said the news "bodes well for COVID-19 vaccines in general”.
“Of course we need to see more detail and await the final results, and there is a long long way to go before vaccines will start to make a real difference, but this feels to me like a watershed moment," Professor Horby added.
Pfizer and BioNTech expect to be able to produce up to 50 million vaccine doses globally in 2020 and up to 1.3 billion doses in 2021. People will need two doses of the jab, meaning not enough shots have been secured for the entire UK population.
