Page 10 - bneMag bne_December 2020_20201201

10 I Companies & Markets bne December 2020
Russian stocks surge following Pfizer vaccine announcement
Ben Aris in Berlin
Russian stocks and the ruble jumped in value on November 9 following the conclusion of the US election and an announcement by US pharmaceutical firm Pfizer that it has a working vaccine against coronavirus (COVID-19).
The dollar-denominated Russia Trading System (RTS) gained 4.3% on the day and broke back above the 1,200 mark
after languishing at around 1,000 for the last few weeks as investors left emerging markets (EM) on the back of fears
of a persistent and damaging second wave of the pandemic sweeping the planet.
The Russian market was doubly hit as the same fears depressed oil prices that slid from earlier highs of around $45 to around $37 as oil producers predicted that demand next year would be reduced by the pandemic.
Oil prices also recovered on November 9 to $42, helping to lift Russian stocks.
www.bne.eu
The ruble-denominated MOEX Russia Index also made gains, rising 2.3% on the day.
The ruble also made gains on the good news, and was up
2% on the day to end at RUB76.34 against the dollar and RUB90.19 against the euro. The currency reached an intra-day high of RUB75.9 against the dollar, amongst its highest value in recent weeks. The ruble has now gained almost 6% from where it stood on the eve of the US presidential election.
The ruble has taken a beating this year and is seen to be heavily undervalued at the moment due to the weight of multiple problems, including the threat of new sanctions on Russia imposed by the incoming Biden administration in the US, following the presidential elections there.
Pfizer and its German partner BioNTech said their vaccine, currently in Phase 3 medical trials, was 90% effective in preventing COVID-19 infections. It is the most detailed and promising public update yet published on vaccine effectiveness