LONDON, Nov 23 — London stocks extended a three-week rally today as investors bet on swift approvals for some Covid-19 vaccines, but shares of AstraZeneca fell after its vaccine data disappointed some traders.
The blue-chip FTSE 100 index gained 0.5 per cent, lifted by shares of energy, mining and financial companies.
AstraZeneca Plc said its vaccine for the novel coronavirus, developed along with the University of Oxford, could be around 90 per cent effective in one dosage regimen, but the average efficacy of its late-stage trial came in at 70 per cent.
Its shares fell 1.8 per cent, with traders citing the fall to lower vaccine efficacy as compared to rivals.
The domestically focused mid-cap FTSE 250 added 0.6 per cent, with travel and leisure stocks providing the biggest boost.
“Stock markets are still consolidating, but market sentiment remains positive and investors are trying their best to look beyond the short-term threat of double-dip recession,” said Milan Cutkovic, market analyst at Axi.
Adding to the mood, British health minister said UK aims to roll out a Covid-19 vaccine before Christmas, with government aiming to ease restrictions next month to allow families to get together.
UK markets have jumped about 14 per cent this month, after vaccines from Pfizer-BioNTech and Moderna showed effectiveness in preventing Covid-19, raising hopes of a sooner-than expected recovery from the pandemic-driven recession.
In Brexit news, Reuters reported EU-UK trade talks were continuing via videoconferencing on Monday with the focus on divvying up fishing quotas and ensuring fair competition for companies, including on state aid.
Recruiting firm SThree Plc rose 5.1 per cent after it projected annual profit above market expectations.
Cineworld Group jumped 18.2 per cent after it secured waivers for its debt covenants until June 2022 along with US$450 million (RM1.8 billion) in new loans to ride out the Covid-19 pandemic. — Reuters
