Genting Bhd, AirAsia Group shares up as Covid-19 vaccine trial positive data spurs economic reopening bets

Genting Bhd, AirAsia Group shares up as Covid-19 vaccine trial positive data spurs economic reopening bets
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KUALA LUMPUR (Nov 10): Genting Bhd and AirAsia Group Bhd's share prices rose in morning trade on Bursa Malaysia today as news of positive data from the Pfizer-BioNTech Covid-19 vaccine trial spurred global economic reopening bets.

At 9.05am, hotel and casino operator Genting’s share price had risen 33 sen to RM3.32, while budget airline AirAsia climbed 14 sen to 67.5 sen.

"Stocks surged on Wall Street as traders swamped into equities on hopes of impending vaccines to battle Covid-19.

"Companies like Genting Malaysia [Bhd] and AirAsia may see some positive reactions with plantation counters to continue enjoying solid crude palm oil (CPO) prices inching towards the RM3,500/MT [level],” Rakuten Trade Sdn Bhd analysts wrote in a note today.

Across US markets overnight, it was reported that the S&P 500 and the Dow rallied sharply but closed shy of their records yesterday as investors bet that a full economic reopening was finally in sight following the first positive data from a late-stage Covid-19 vaccine trial.

It was reported that US crude oil rose more than 8% and pushed up energy stocks, while safe-haven US Treasuries were sold off after US drugmaker Pfizer and its German partner BioNTech said a large-scale trial of their vaccine showed that it was more than 90% effective in preventing Covid-19.

"The Dow Jones Industrial Average rose 834.57 points, or 2.95%, to 29,157.97 in its biggest one-day percentage gain since June 5. The S&P 500 rose 41.06 points, or 1.17%, to 3,550.5, and the Nasdaq Composite dropped 181.45 points, or 1.53%, to 11,713.78.

"The companies hit hardest by months of travel bans and lockdowns surged. The NYSE (New York Stock Exchange) airlines index closed up 19.4%, while plane-maker Boeing Co jumped 13.7%. Cruise line operator Carnival Corp finished up more than 39%,” Reuters reported.