Pfizer announces Covid-19 vaccine, bank shares rise on stock markets


(Ecofin Agency) – US pharmaceutical company Pfizer announced it has developed a vaccine that is 90% effective against Covid-19. The announcement has revived investors’ hope in seeing activities get back to their pre-Covid-19 level and subsequently, bank shares grew on stock markets. However, technology stocks did not grow at the same pace.

From Tokyo to Paris to emerging market stock exchanges, the main financial market indices were in the green. The Pfizer share itself rose by 7.5% on November 9. Investors are already seeing strong returns on a product that will be in demand around the world.

In the New York market, the largest banking groups are among the ones that benefited the most from the announcement. JP Morgan, Bank of America, Wells Fargo, and Citi rose by more than 10%.

In Europe also, the banking sector made good progress. The largest in this region in terms of stock market values (HSBC Holdings) jumped by 10%, while the BNP Paribas, now the second-largest bank in Europe, rose by 17%, according to Capital IQ data.

Similarly, on the African continent, bank shares grew sharply, but at a slower pace. With the pandemic, banks had to set money aside to deal with the risk of payment defaults, as many of their customers had to stop their activities as part of restriction measures. These provisions reduced banks’ net profits but boosted their cash flow.

As a result, increases in net margins are expected, now that hopes for a vaccine and a return to normality are emerging in the global economy. Indeed, alongside banks, other stocks have surged. This is the case of major U.S. carriers such as Delta Airlines, whose shares have jumped by more than 17%, ahead of the real recovery of airport activities. However, Pfizer announced that its vaccine is only 90% effective and, more importantly, that it did not know how long the protection would last.

Between Joe Biden’s declared victory in the U.S. presidential election and an announced solution against covid-19, the markets needed new hope. This brings joy to everyone, except for technology stocks, especially American ones. Netflix, Zoom, and the others slumped.

Idriss Linge


South Africa: Exeo Capital buys Pearson Institute

Previous article

Nigeria’s first and leading Agri-Tech company, Farmcrowdy celebrates 4 years Anniversary – Techgist Africa

Next article

You may also like


Comments are closed.

More in Business