Page 32 - bneMag bne_December 2020_20201201

32 I Cover story bne December 2020
Central and Southeast Europe stock markets jump in anticipation of COVID-free future
Clare Nuttall in Glasgow (see end for additional reporting)
It was followed swiftly by news from Moderna on its COVID-19 drug, which trials showed to be 94.5% effective, causing markets to shoot up again, with aviation stocks in particular rallying.
From COVID companies to hospitality and retail in Warsaw The main indices for the larger and more liquid stock exchanges in the Central and Southeast European region reflected the global trend.
The wave of optimism sparked by the vaccine news led to an improvement
of the mood on the region’s largest bourse, the Warsaw Stock Exchange. The main index, WIG, has risen 12.41% in the past four weeks, despite the rapid spread of the virus in Poland recently that led the government
to tighten restrictions and urge Poles to skip Christmas travel.
Analysts also noted that the vaccine news led to investors buying the
stocks of companies that had suffered because of lockdown and subsequent varying forms of COVID-19 restrictions, such as restaurant operator AmRest, shoe retailer CCC, clothes retailer
LPP or travel agent Rainbow.
On the other hand, investors started selling stocks of companies that did well in the pandemic circumstances, such as the online retailer Allegro, gaming giant CD Projekt and
maker of medical protective gloves and masks Mercator, one of the so-called COVID companies that rallied during the pandemic.
The main stock markets of Central and Southeast Europe jumped
in mid-November on a series of positive news reports of vaccine trial successes that gave hope that an end to the disruption caused by the coronavirus (COVID-19) could arrive within months.
The performance of the main indexes
of exchanges in Warsaw, Prague, Budapest, Bucharest and elsewhere reflected the global pattern, as the main international indices also rose to highs not seen for several months. Among them, the Dow Jones soared to pre-
pandemic levels, while the FTSE-100 reached its highest level since June.
The first boost came in the second week of November, when early results from US pharma giant Pfizer’s phase three trials of its vaccine showed it was over 90% effective against the virus. This news broke shortly after Democratic candidate Joe Biden was declared
the winner of the US presidential election; stocks had already started surging during the count as it became increasingly clear that the US was heading for a Biden presidency.
The Warsaw Stock Exchange's main index, WIG, has risen 12.41% in the past four weeks.
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