[ad_1]
AFP via Getty Images
The shares of Carnival Corp. and Royal Caribbean Group advanced to record high volume rallies on Monday, hoping for a quick recovery in the cruise industry following positive news about a potential COVID-19 vaccine.
CCL carnival stock,
climbed 35.3% in the afternoon to trade towards the highest close since June 17.
The next biggest gain was the 20.3% rally on April 6, 2020, two sessions after the stock hit its lowest level in 27 years.
Trading volume increased to 160.4 million shares, compared to a daily average of approximately 34.0 million shares.
The rally comes after Pfizer Inc. PFE,
and BioNTech SE BNTX,
said their COVID-19 vaccine candidate BNT162b2 was found to be 90% effective in the first interim analysis of the Phase 3 study. This sparked a big rally in the broader stock market like the Dow Jones Industrial Average DJIA,
charged 1,253 points, or 4.4%, more.
“Most of our recent conversations with investors suggested that the market would have accepted 60% to 70% efficiency, so this result of [greater than] 90% appear to be well ahead of baseline expectations, ”Barclays analyst Carter Gould said.
Royal Caribbean shares RCL,
rose 28.0% to the highest close since June 8. This would be the biggest gain in a day since trading began in April 1993.
The next largest gain was the 24.7% hike on October 13, 2008, in the midst of the financial crisis. The trading volume of 23.0 million shares was more than triple the daily average of around 7.4 million shares.
Elsewhere, NCLH shares of Norwegian Cruise Line Holdings Ltd.
rose 27.1%, to the highest close since June 9. It would be the second biggest gain in a day since going public in January 2013. The record rally was the 42.2% gain on March 24, 2020, which came on the heels of the record close of 7.77 $ March 18.
Cruise operators have been among the companies most affected by the COVID-19 pandemic, as they have struggled to resume operations despite government restrictions in the United States and abroad. With that in mind, a potential vaccine, especially one that is more effective than expected, could be a game-changer for the cruise industry.
Even with Monday’s rally, Carnival shares are down 63.2% year-to-date, Royal Caribbean is down 43.9% and Norwegian Cruise is down 63.1%. In comparison, the S&P 500 SPX index,
rallied 11.6% this year.
[ad_2]
Source link