Shot in the arm: Vaccine prompts hospitality shares jump

Covid vaccine hospitality share boost
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The news that pharmaceutical companies Pfizer and BioNTech have developed an effective Covid vaccine saw shares in hospitality, leisure, pub and tourism firms jump by up to 52 percent on 9 November.

 

The positive announcement saw the FTSE 100 enjoy its best day of trading since lockdown was first announced in March, while the UK government placed an order for 40 million doses – with ten million expected before Christmas.

“The reported breakthrough on a vaccine is clearly very good news for public health and for the economy,” said UKHospitality CEO Kate Nicholls. “Should this vaccine make it to rollout stage, it cannot come soon enough.”

“Hospitality operators will be boosted by the strong sense of stability it brings, enabling longer-term planning of investment, employment and growth, not to mention planning the welcoming customers back to their much loved venues.”

Pub companies Mitchells and Butlers, Youngs, Marstons and The City Pub Group saw shares jump by over 24 percent, Cineworld stocks increased 40 percent, and International Airlines Group shares were up 25 percent.

Premier Inn owner Whitbread also saw shares increase by 15 percent, the Restaurant Group shares rose 30 percent, while catering group SSP saw shares rise by 52 percent – making it the biggest riser on the FTSE 100 that day.


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