COVID vaccine rollout has begun. The Pfizer / BioNTech vaccine is now approved for use in the US, UK and several other countries and the most vulnerable individuals are already receiving the first dose. Several other vaccines have also announced successful trials. I review how the twelve subsectors we identified as likely to benefit from a vaccine have fared relative to the broader S&P index.
The subsectors identified in the piece are shown in Table 1. The share prices of these sectors were highly responsive to three COVID-related ‘bounce’ events (26 Feb, 17 Apr and 9 Nov), providing an indication that future performance would likely be linked to vaccine news. On average, the twelve subsectors increased 15% on the day the Pfizer announcement (9 Nov), 14pp more than the composite S&P 1500 index.
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