London: Investors expecting an imminent COVID-19 vaccine have started buying shares of banks and industrial companies in anticipation of a massive return in consumer confidence, although many remain wary of risks in sectors ravaged by the pandemic
Developing a form of preventive medicine is seen as the best chance to stop the coronavirus that has killed 1 person 2 million people and is the number one issue for money managers looking for the next big shift in financial markets
As the market hype around the Uo if the election subsides, investors are now preparing for the good vaccine news, which they think is a matter of time, not if
« It’s going to be huge, » said Stuart Oakley, head of coin trading at Nomura in London. « If we get a vaccine, we’ll see all this pent-up demand increase. »
Of the nearly 45 vaccines subject to human trials, those for Pfizer and Moderna are seen as likely to win regulatory approval this year, with AstraZeneca not being too late.
« What we’ve done is give ourselves some options for the recovery trade, or the vaccine business, through exposure to some financial issue, » said Binay Chandgothia, a Hong Kong-based portfolio manager at Principal Global Investors.
He said banks are benefiting from increased economic activity and will be helped if bond yields rise, adding that he has increased exposure to growth-sensitive small companies and will buy shares in Singapore and Hong Kong if trade and travel boom
Brian Jacobsen, chief investment strategist at Wells Fargo Asset Management in Wisconsin, said industries exhibited broad exposure to a rebound in confidence in areas from product building to aviation.
Deutsche Bank runs a « vaccine basket » in Singapore dollar and Thai baht, which is seen to benefit from increased trade and tourism, in exchange for the Philippine peso, which is weighed down by rising imports
Financial and industrial institutions gained with the wider market this month, but slowed sharply in making gains of around 5% in global equities this year as the baht has recently strengthened against the peso.
Shinji Naito of Japan’s SPARX Asset Management, which manages $ 12 billion, hopes the vaccine will gain from the stock shortage the pandemic has pumped, such as some tech companies, while helping in long-term investments like real estate broker Tokyo Tatimono
Dave Wang, Portfolio Manager at Nuvest Capital in Singapore, said long-term pairs could extract gains from what would be an uneven recovery
For example, airports, which charge per plane regardless of cargo load, can do better than airlines with low care and higher fuel costs.
Of course, not everyone is flocking to get a piece of the procedure amid questions about the timing, efficacy and distribution of any vaccine still left
« Better to be a little late than too early, » said Hugh Dave, chief investment officer at Atlas Funds Management in Sydney, indicating that the delay will make companies under pressure need to raise more money quickly.
Others feel, however, that it is now safe to bet on a global recovery, which the vaccine will boost
“I think there are two different operations,” said Sean Taylor, chief investment officer for Asia, to German fund manager DWS.
This story was published from the news agency feed without making any changes to the text. Only the title changed.
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Vaccine, Investor, Stocks, Finance, Moderna, Coronavirus
World News – Australia – As the market hype around the US elections subsides, investors are betting on the Coronavirus vaccine
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