Shares of Mitchells & Butlers plc (LON: MAB) surged 13% today extending yesterday’s 26% rally as investors bought the pub operator’s stock on news that a coronavirus vaccine was almost ready.
Stocks of companies that have been negatively affected by the coronavirus pandemic and the lockdown measures imposed to combat the disease rallied on yesterday’s news after Pfizer and BionTech announced that their COVID-19 vaccine was 90% effective.
UK Health Minister MattHancock confirmed that the British government was ready to start distributing the vaccine once it is readily available triggering a rally in stocks within the entertainment and travel sector that has been hit hard by the coronavirus pandemic.
However, the vaccine is yet to be approved by the major regulators as the two companies said they will be submitting the study data later this month, and with only one month left in the year, the most likely scenario is that the vaccine will be available next year.
However, this did not stop investors from bidding up Mitchells & Butlers shares following yesterday’s announcement.
Mitchells & Butlers had been considering a staff layoff scheme in October as the coronavirus restrictions plunged the pub into massive losses and the UK government furlough scheme came to an end.
However, yesterday’s COVID-19 vaccine news provides a ray of sunshine to the company, whose pubs might resume normal operations once the vaccine is available to the public.
Mitchells & Butlers share price
Mitchells & Butlers shares today surged 13% to trade at 230p having risen from yesterday’s closing price of 203.5p.