"As a result, the issuance was upsized from the initial S$750 million to S$850 million with more attractive terms for SIA," it added.
The five-year bonds, which have been placed with a variety of institutional investors, will carry a coupon of 1.625 per cent. They can also be converted into ordinary shares at a price of S$5.743.
This represents a 45.8 per cent increase from Thursday's closing price of S$3.94.
"This issuance further strengthens the company’s liquidity position, and bolsters its ability to navigate the challenges posed by the impact of the COVID-19 pandemic on the business," said SIA.
It added that proceeds from the bonds will be used to fund operating and capital expenditure, and debt servicing.
HSBC bank is the sole bookrunner and lead manager of the issue.
The airlines said that "positive discussions" have taken place on aircraft sale-and-leaseback transactions, and that it will continue to explore other means to "strengthen ... liquidity as necessary".
SIA has raised approximately S$12.2 billion since the start of the 2020/2021 financial year, including Friday's issuance.
The airlines said that for the period up to July next year, it retains the option to raise up to S$6.2 billion in additional mandatory convertible bonds that would provide further liquidity if necessary.
Earlier this week, SIA said it managed to reduce its monthly cash burn to “below S$300 million”, down from about S$350 million a month in the three months of May to July.
In the release, CEO Goh Choon Phong said the placement was "successfully executed with a highly competitive coupon and substantial conversion premium".
"Such attractive terms for the company underscore the strong confidence that investors have in Singapore Airlines, as well as our ability to successfully overcome the near-term challenges and emerge as a leader in the airline industry,” added Mr Goh.
On Tuesday, SIA's share price rose as much as 21 per cent during intraday trading to a five-month high, as markets rallied on news that a vaccine candidate was 90 per cent effective in treating COVID-19 patients.
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THE following companies saw new developments that may affect trading of their shares on Friday:
Singapore Airlines (SIA): The new S$850 million five-year convertible bonds by SIA will carry a coupon of 1.625 per cent per annum and be issued at par. The initial conversion price is S$5.743 for each new ordinary share, said the flag carrier in a bourse filing early Friday morning. Shares of SIA closed at S$3.94 on Thursday, up S$0.02 or 0.5 per cent.
SATS: The ground-handler and food supplier continued to chalk up a quarterly loss, but managed to reduce the red ink to S$33.2 million for the three months to September, from S$43.7 million for the preceding quarter. SATS on Thursday also said it is gearing up to handle vaccines for Covid-19. The counter ended at S$3.60, up S$0.07 or 2 per cent, before the release of its financial results.
ComfortDelGro: The transport operator managed a net profit of S$21.7 million for the third quarter ended Sept 30, down 69 per cent from S$70 million a year ago, but improving from its net loss for the first half of the year. ComfortDelGro shares closed up S$0.01 or 0.7 per cent at S$1.50 on Thursday before the news.
Golden-Agri Resources: The palm oil plantation owner's net loss narrowed for its fiscal third quarter to US$5 million for the three months ended Sept 30, 2020, from US$61 million for the previous quarter, it said on Friday morning. Golden Agri shares rose 0.2 Singapore cent, or 1.4 per cent on Thursday to close at 14.9 cents.
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OUE Commercial Reit (OUE C-Reit): Its distributable income rose 15.8 per cent year on year to S$34.2 million for the third quarter ended Sept 30, 2020. OUE C-Reit units closed unchanged at 34.5 Singapore cents on Thursday before this announcement.
Metro Holdings: The property investment and retail group recorded net profit attributable to shareholders of S$19.8 million for the first half ended Sept 30, down 5.7 per cent from the year-ago period. Metro shares closed at 65 Singapore cents on Thursday, up one cent or 1.6 per cent, before its results announcement.
UMS Holdings: The semiconductor equipment maker saw net profit rise 41 per cent to S$12.9 million for the third quarter ended Sept 30, on the back of strong semiconductor sales. UMS shares closed down 1.5 Singapore cents or 1.5 per cent at 96 cents on Thursday before the release of the results.
Sunpower Group: The environmental protection solutions provider reported a net profit of 36.6 million yuan (S$7.45 million) for the third quarter ended Sept 30, down 66.8 per cent from the year-ago period. Sunpower shares closed down 1.5 Singapore cents or 2.3 per cent at 64 cents on Thursday before the results release.
Singapore Post (SingPost): SingPost Group Treasury will issue S$250 million in 10-year fixed-rate notes guaranteed by postal service provider SingPost. The senior unsecured notes will carry a coupon of 2.53 per cent per annum. SingPost shares closed at 68.5 Singapore cents on Thursday, down 0.5 cent or 0.7 per cent.
Mapletree Logistics Trust (MLT): The real estate investment trust's preferential offering was oversubscribed, raising gross proceeds of S$144.1 million. MLT units closed up S$0.04 or 2.1 per cent at S$1.98 on Thursday before the news.
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LONDON: Top US government scientist Anthony Fauci said on Thursday (Nov 12) the coronavirus vaccine "cavalry" was on its way, bringing fresh hope as the world registered more than 10,000 deaths in just 24 hours, a record.
The world-leading expert on infectious diseases said that after this week's much-trumpeted news that a vaccine developed by US drug giant Pfizer and Germany's BioNTech was 90 per cent effective, another is "literally on the threshold of being announced."
"The cavalry is coming, but don't put your weapons down," Fauci said by video-link to a think-tank in London, as US biotech firm Moderna was poised to reach a threshold in vaccine trials that would allow it to apply for an emergency use authorisation from US regulators.
The scientist, who has gained global fame for standing up to President Donald Trump on COVID-19, urged the public to continue respecting public health measures such as wearing masks and washing hands.
Palestinian men walk past street art showing doctors mask-clad due to the coronavirus pandemic, in Khan Yunis in the southern Gaza Strip. (Photo: AFP/Mohammed Abed)
News of promising vaccine results has brought much-needed hope as the world grapples with a pandemic that shows no sign of abating, with grim statistics flowing in day after day.
An AFP tally of official sources found Thursday that the daily number of global deaths had gone over the symbolic level of 10,000 in the past 24 hours for the first time since the start of the pandemic, standing at 10,010.
''PEOPLE JUST DON'T CARE'
Global markets slid on fears of the virus surge that threatens economic recovery, eroding earlier gains led by vaccine hopes.
France reported Thursday that the number of people in hospital for COVID-19 was now higher than previous peaks in April.
Serbia's Health Minister Zlatibor Loncar meanwhile cautioned that there were no more hospital beds available for virus patients in the capital Belgrade.
But for all the dire warnings, there was growing evidence that people were ignoring restrictions imposed by governments and minimising the risk of infection.
In France, a survey revealed that more than half of the population had broken regulations governing a current partial lockdown.
Medical workers arrive at a hospital in Naples in an ambulance with a COVID-19 patient. (PhotoL AFP/Filippo Monteforte)
It showed that 60 per cent had flouted the rules at least once, either by giving a false reason for going out on their self-signed permission slip or by meeting up with family and friends.
"The second wave is extremely strong," Prime Minister Jean Castex warned in a virtual news conference. "One in four deaths is now due to COVID."
Over in India, crowds packed New Delhi markets ahead of the Diwali festival of lights, the country's biggest holiday, saying they were fed up with being cooped up.
India has the world's second-highest caseload behind the United States, and there are fears that a Diwali surge could hit major cities across the country of 1.3 billion.
"People just don't care," said Tanisha, a 19-year-old student. "People want to come out."
"I am so bored at home that I am not scared to shop."
VACCINE CONCERNS
Compounding the weariness, a report by a non-profit that fights misinformation delivered worrying news on Thursday, saying conspiracy theories about COVID-19 vaccines played an "outsized role" on social media that could threaten their efficacy.
A resident at the Domenico Sartor nursing home near Venice hugs her visiting daughter through a plastic screen in a so-called "Hug Room". (Photo: AFP/Piero Cruciatti)
Many posts analysed by researchers at First Draft linked vaccines to conspiracy theories such as the belief that a future COVID-19 shot will be used to microchip individuals and develop mass population-tracking systems.
Some posts claimed vaccines that used the novel mRNA technology - as developed by Pfizer, BioNTech and Moderna - would "change people's DNA," or linked them to "targeted depopulation efforts or malign human engineering programs".
"We have reached a pivotal and hypersensitive crossroads where increasing rates of vaccine scepticism may not only jeopardise the effectiveness of a potential COVID-19 vaccine, but that of vaccines more broadly," the non-profit said.
There were also concerns about poorer countries' access to future vaccines.
With that in mind, the Paris Peace Forum international conference was set to raise more than US$500 million for a mechanism led by the World Health Organization that aims to ensure access to coronavirus tests, treatments and vaccines for all countries.
And there was some good news in Britain, whose economy enjoyed a record third-quarter rebound from its deepest ever recession, even if experts predicted another slump due to fresh virus restrictions.
NEW YORK (REUTERS) - China's President Xi Jinping personally decided to pull the plug on Ant Group's US$37 billion (S$50 billion) initial public offering, the Wall Street Journal reported on Thursday (Nov 12), citing Chinese officials with the knowledge of the matter.
The decision to stop what would have been the world's largest ever IPO, came days after the fintech giant's billionaire founder Jack Ma launched a public attack on the country's financial watchdogs and banks.
President Xi ordered Chinese regulators to investigate and effectively shut down Ant's stock market flotation, the report said.
Ant Group did not immediately respond to Reuters request for comment.
The Information Office of the State Council, China's Cabinet, could not be reached immediately for comment.
Soon after Mr Ma's scathing speech, state regulators started compiling reports including one on how Ant had used digital financial products like Huabei, a virtual credit card service, to encourage poor and young people to build up debt.
The general office of the State Council compiled a report on public sentiment about Mr Ma's speech and submitted it to senior leaders including President Xi, Reuters had reported.
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[BEIJING] Chinese technology shares tumbled for a second day after Beijing clamped down on the Internet industry, wiping out more than US$200 billion of value.
The Hang Seng Tech Index slumped 3.9 per cent on Wednesday in Hong Kong, taking its two-day loss to almost 9 per cent. Shares of Alibaba Group, Tencent, JD.com, Meituan and Xiaomi sank at least 8 per cent in two days after the Communist Party unveiled regulations to root out monopolistic practices in the Internet industry.
Tech is the latest sector to be targeted by Beijing after new curbs on financial firms that triggered the shock suspension of Ant Group's US$35 billion stock sale last week. Xi Jinping's government is increasingly curtailing the influence of private corporations that dominate its burgeoning Internet, e-commerce and digital finance industries, pivoting away from its previously hands off approach.
"I literally gasped when I first read these guidelines," said John Dong, securities attorney at Joint-Win Partners in Shanghai. "The timing - on the eve of Singles Day - the forcefulness and the resolve to remake the tech giants is startling."
China's antitrust watchdog is seeking feedback on rules that establish a framework for curbing anti-competitive behaviour such as colluding on sharing sensitive consumer data, alliances that squeeze out smaller rivals and subsidising services at below cost to eliminate competitors. They may also require companies that operate a so-called Variable Interest Entity - a vehicle through which virtually every major Chinese Internet company attracts foreign investment and lists overseas - to apply for specific operating approval.
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"Internet giants have expanded their reach into various sectors like finance and healthcare that are vital to the economy and that really concerns regulators," said Shen Meng, director of Beijing-based boutique investment bank Chanson & Co. "The move could discourage firms in the tech sector to list in the near term as those impacted will need time to adjust their businesses accordingly."
On Nov 3, policymakers shocked the investment world by suspending an initial public offering by Ant Group, a fintech company owned by billionaire Jack Ma. The decision came just two days before shares were set to trade in a listing that attracted at least US$3 trillion of orders from individual investors.
Liang Tao, vice-chairman of China Banking and Insurance Regulatory Commission, said on Wednesday that the country will also strengthen its anti-monopoly examinations of the fintech sector.
The new regulations for the Internet industry signal a "further tightening" of the online economy, although the real impact will depend on how the rules are enforced, JPMorgan Chase & Co analysts led by Alex Yao wrote in a note.
The proposed regulations come at a bad time for tech shares, which are already under pressure from a global rotation that has sent the Nasdaq Composite Index almost 3 per cent this week.
"Beijing's tightening regulations, including the antitrust laws, is a heavy blow to the technology giants," said Daniel So, Hong Kong-based strategist at CMB International Securities Ltd.
"It's an additional blow to the shares, when investors are rotating out of the sector into old-economy shares because of the vaccine boost," he said, adding that firms such as Tencent and Alibaba will continue to face downside pressure.
CORK, Ireland: Preliminary data from the Pfizer/BioNTech COVID-19 vaccine trial suggests it provides 90 per cent efficacy at preventing the disease.
At the very least, this news will result in a large sigh of relief across the vaccine community. It signifies a breakthrough – it’s the first announcement that a vaccine can protect against SARS-CoV-2 infection in humans.
This shows it can be done. But how well it can be done is still a big question that no one has the answer to. These results are promising, but there’s a lot more we now need to confirm.
The 90 per cent efficacy is a strong result, but we should remember that this is an interim analysis, based on 94 cases of disease that have occurred across those receiving either the vaccine or a placebo.
Pfizer has noted in its trial protocol that it needs at least 164 cases of disease to occur across the study to reliably assess the vaccine’s efficacy.
If subsequent cases occur more frequently among those who have had the vaccine rather than the placebo, then this efficacy figure will fall. So we don’t yet know if this number is truly reflective of the vaccine’s protective ability – meaning crucially, we need to get to the end of the trial.
But if this is the case, why announce these interim results now?
An interim analysis of trial data like this isn’t uncommon, particularly in phase 3 vaccine trials, as it’s not unusual for trials to fail during testing.
Therefore, you need to determine as soon as you can, with as much robustness as you can, whether pursuing the trial is worthwhile. Continuing when things are futile is a waste of resources – and in some cases unethical.
The only way to see whether continuing is the right option is for the trial’s independent data and safety monitoring board to look at some or all of the results.
A nurse shows a Covid-19 vaccine produced by Chinese company Sinovac Biotech at the Sao Lucas Hospital, in Porto Alegre, Brazil AFP/SILVIO AVILA
For COVID-19, where time is a major constraint, many efforts have been made to incorporate interim analysis into studies in a way that provides an answer, with some confidence, in as timely a manner as possible.
This interim review was therefore planned at the start of the trial, and has fulfilled its purpose. It is a very positive signal that the trial needs to continue – even if the actual data from the review leaves us with many questions.
REVIEWING EFFICACY AND IMMUNE RESPONSE THE NEXT STEPS
One key thing these interim results don’t tell us is how long protection lasts. Participants in this phase 3 trial received two doses of the vaccine, and measurement of its efficacy was taken seven days after the second dose was given.
This is likely around the height of the initial immune response. It will be really important to understand how durable this initial protection is after this point.
A pessimist would hope for retaining efficacy for at least three months. An optimist would hope for retaining high levels of protection for a number of years.
However, being realistic, this mRNA-based vaccine platform is new, and so we’ll need time to understand if and when the initial response starts to wane. We also need to understand if this vaccine and others in development can induce good memory responses from the immune system that will provide protection for years to come.
It’s also important to identify the exact immune response that is mediating protection – what are called the “correlates of protection”. Is it a particular type of antibody or T cell that’s involved, and what is the threshold amount of these needed to protect an individual?
With this knowledge, future trials can focus on measuring the quantity of these immune markers in individuals to better assess whether vaccines are working.
FILE PHOTO: People wear face masks amid the global outbreak of the coronavirus disease (COVID-19) at Shanghai Railway Station in Shanghai, China, November 10, 2020. REUTERS/Aly Song/File Photo
One other important thing we need to know is whether the vaccine completely prevents people from getting infected with any virus at all, or if it simply makes people more effective at fighting the virus off if they do succumb to some infection.
This will govern whether the vaccine prevents only disease or can prevent viral transmission as well. All we know at the moment is that it has reduced symptomatic cases by 90 per cent.
Though it doesn’t have the full picture, the US FDA has said it will consider authorising the vaccine for emergency use – ahead of full approval – once the trial has collected two months’ worth of safety data on half of the participants. Pfizer expects to have this available by the third week of November.
The trial will also continue for many months to come – in order to reach that reliability threshold of 164 cases of disease – and there will be further follow-ups looking at the vaccine’s safety and the immune responses and protection it elicits in different groups of participants.
This should give further transparent information and confidence on how well this vaccine works and in which populations.
If the vaccine’s safety and efficacy are looking good, it will then be submitted to regulatory agencies for full approval. The highest risk groups will then be first in line for immunisation.
In the UK, this will likely include care home residents and workers, health and social care workers, and people over 80, assuming the vaccine is shown to be safe and effective in these groups.
In Europe, prioritised groups include healthcare and essential workers, those vulnerable to the disease and socioeconomically disadvantaged people.
A nurse leans from a balcony, as the spread of the coronavirus disease (COVID-19) continues, in Rome, Italy, May 2, 2020. REUTERS/Remo Casilli
But even if approved, big challenges remain. Pfizer expects to have 50 million doses ready this year, enough to immunise 25 million people, and 1.3 billion by the end of 2021.
Given the size of the world’s population – and the fact the vaccine requires two doses – universal coverage is a long way away.
The other vaccines in development therefore remain just as important. We will need more than one vaccine for global coverage, and to ensure we have the right one for each age and health cohort.
Overall, these results should be celebrated, but with the realisation that this is only one step in the journey. We still have a long way to go in getting the world back to normal – but the compass is pointing in the right direction.
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SINGAPORE, Nov. 1, 2020 -- A Singapore Airlines A380 aircraft is seen at Singapore's Changi Airport Terminal 3 on Oct. 31, 2020. Over two weekends from Oct. 24 to Nov. 1, Singapore Airlines hosted diners in two A380 passenger aircraft docked in Changi Airport Terminal 3, offering customers a chance to have meals in an aircraft setting. (Photo by Then Chih Wey/Xinhua via Getty) (Xinhua/Then Chih Wey via Getty Images)
SINGAPORE – The Singapore-Hong Kong air travel bubble (ATB) is the first of its kind in the region – perhaps the world – and that is significant, said Transport Minister Ong Ye Kung on Wednesday (11 November).
In a virtual media conference, he said, “It is an air travel bubble between two regional aviation hubs who decide to open up to each other, and that is significant. There is no restriction on what kind of travellers so it’s quite unlike the RGL (Reciprocal Green Lane), which is restricted to business travellers. This covers all travellers: couples uniting, partners uniting, visiting families, tourism, so on and so forth.”
Under the ATB, which will start on 22 November, travellers between Singapore and Hong Kong will be subject to COVID-19 tests, in lieu of quarantine or Stay-Home Notice. There will be no restrictions on the purpose of travel and no requirement for a controlled itinerary or sponsorship, but travellers must bear the cost of the Polymerase Chain Reaction (PCR) tests.
It will begin with one flight a day into each city, with 200 passengers each way. Singapore Airlines and Cathay Pacific Airlines, the respective flagship carriers for each city, will take turns to run flights on alternate days.
Ong stressed that the ATB is not only the first step to rebuild the respective aviation hubs, but “in the case of Singapore, (it) is not just about the aviation sector or tourism sector, it is about making sure there is a future for Changi, there is a future for SIA”.
Asked why the two sides had chosen to go straight into the ATB rather than begin with an RGL, Ong said it was down to the two cities’ familiarity with each other as aviation hubs, and a recognition that the respective airports and airlines are “critical to our survival”. The Republic was also responding to the territory’s invitation to various countries to establish an ATB
“And so from day one, I think we don't beat around the bush, to say that let's go for air travel bubble, rather than take it step by step. So it's really a meeting of the minds.”
Ong added that if successful, the ATB will be a good reference point for others.
“If we can demonstrate to the world that this is successful, it becomes a good reference point, a template and a model that other places, other territories and countries can look at as a point of reference. There are quite a number of places where they have very successfully controlled the virus and epidemic, just like Hong Kong and Singapore have, and they are considering how to open their borders and I hope this could be a template and a reference point for them.”
A six-hour wait in Hong Kong?
Under the ATB arrangements, travellers from Singapore to the territory must be tested for the coronavirus within 72 hours of their departure, then take another test upon arrival at Hong Kong International Airport (HKIA). They are also required to wait at HKIA for their test results.
When asked how long the process would take, Civil Aviation Authority of Singapore (CAAS) director-general Kevin Shum said it would likely take “less than six hours”. Ong expressed hopes that it would take four hours, and that drinks and amenities would be provided.
Acknowledging the “inconvenience and discomfort” of the process, the Minister nevertheless said, “This is as close as it gets to pre-COVID travel, in the sense that wherever you are now, on the Hong Kong side or Singapore side, you don't need anyone to sponsor, to tell you you can travel, or you need a special reason, then you can travel. Now the empowerment is turned around again...you can travel if you want to.”
Ong admitted that he was unsure about travellers’ response to the scheme, and reckoned that they would take a wait-and-see approach first. “I want to see whether I can send off the first batch of Singaporeans on the 22nd of November. It may be a half empty or an empty plane, or a full plane,” said Ong, adding that he hopes the airlines will be “responsible” in their pricing, given the pent up demand for travel.
Suspension of ATB?
There are also provisions in place if there is a resurgence of COVID-19 cases on either side. If the average number of daily unlinked cases over a seven-day period rises to more than five in either Singapore or Hong Kong, the ATB will be suspended for two weeks. The ATB will resume if the number falls back below five on the last day of the suspension period.
Asked what would happen to those who have already booked flights and tests if the ATB is indeed suspended, Ong’s response was bullish. “We didn't set up the ATB or the ATP system with the expectation that we will suspend it someday. We are working really hard to make sure we don't have to suspend it, but this is just in case there are clusters again.”
Nevertheless, there will be procedures for travellers to defer their plans until the ATB restarts, said Ong.
The 50-year-old said that in the early days of the pandemic, the priority was eradicating the virus from the community, and this necessitated the closing of borders. “But now if that is still our problem statement, that is itself a problem, because it means there's a high chance that at the end of all this, we have no Changi Airport and we have no SIA.”
He added, “It's not about the economy, it's about our life...So our choice now is, can we accept some controlled risk that we can mitigate to a very small extent. And we take some of those risks, but give us ourselves the best chance…to continue to maintain our way of life.”
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THE following companies saw new developments that may affect trading of their shares on Wednesday:
Ascendas Real Estate Investment Trust (Ascendas Reit): As part of its S$1.2 billion equity fundraising, the Reit has priced its preferential offering to unitholders at S$2.96 per new unit and the private placement at S$3.026. Ascendas Reit's manager requested a trading halt on Tuesday morning, and lifted the halt on Wednesday. The counter closed at S$3.19 on Monday.
Sembcorp Marine (Sembmarine): The offshore and marine engineering group continued to incur losses for its fiscal third quarter ended Sept 30, with low overall business volume and execution delays, it said in a business update on Wednesday morning. Sembmarine added that it "expects losses to continue into the fourth quarter". The counter rose 8.9 per cent or 1.1 Singapore cents to close at 13.4 cents on Tuesday.
Keppel Corp: Keppel Land China, a subsidiary of Keppel Land, is divesting its 100 per cent stake in Chengdu Hilltop Development Co for 1.26 billion yuan (S$250.4 million). Keppel Corp shares closed at S$4.86 on Tuesday, up S$0.15 or 3.2 per cent before this announcement.
Valuetronics Holdings: The mainboard-listed electronics manufacturing service provider on Wednesday posted a 12.1 per cent drop in net profit to HK$91.5 million (S$15.9 million) for the six months ended Sept 30, 2020, from HK$104.1 million a year ago. The counter closed down 1.5 Singapore cents or 2.5 per cent to 58 cents on Tuesday.
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Frasers Property: The real estate developer and manager on Wednesday posted a 66.4 per cent drop in net profit to S$188.1 million for the full year ended Sept 30, 2020 from S$560.3 million a year ago. Frasers Property shares closed at S$1.14 on Tuesday, up S$0.03 or 2.7 per cent.
Bukit Sembawang Estates: The property developer reported a net profit of S$73.7 million for the first half of its financial year ending in September, up 11 per cent from S$66.6 million the year before. Bukit Sembawang shares ended S$0.05 or 1.4 per cent higher at S$3.66 on Tuesday, before its results announcement.
First Real Estate Investment Trust (First Reit): The Reit's distribution per unit fell 53 per cent to 1.01 Singapore cents for the fiscal third quarter ended September, compared to 2.15 cents a year ago. First Reit units closed at S$0.44 on Tuesday, up S$0.02 or 4.8 per cent, prior to its business update.
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NEW YORK: The surge in shares of Netflix, Zoom and other of this year's stay-at-home corporate winners has been brought to a sudden halt by promising vaccine data suggesting a possible way out of the COVID-19 pandemic.
The jury was still out on Tuesday, however, as to whether that reverse, sparked by positive data from trials run by US drugs giant Pfizer and Germany's BioNtech , would last.
Shares in video conferencing network Zoom fell 4per cent on Tuesday after plunging about 17 per cent a day earlier. But both exercise bike maker Peloton, which sank more than 20 per cent on Monday, and Netflix, actually gained ground on Tuesday.
Tech heavyweights from Google-parent Alphabet to Apple and Amazon also suffered but have still mushroomed hugely in value this year.
"Even if a vaccine proves effective, inoculating a large enough part of the population will take time and leave these segments prone to economic lockdown fallout," said Commerzbank analyst Christoph Rieger.
The shakiness of moves may have reflected both those doubts about the speed at which a vaccine can be produced and distributed as well as the remaining doubts about whether it will work as a solution in the long-run.
But there is also the conviction that the pandemic has fundamentally changed business for many of these companies in ways that will not be reversed.
"Investors are now focused on how the 'new normal' looks ... and how sustainable are the tailwinds for such companies as the direct impact of the pandemic on consumer behavior starts to diminish," MKM Partners analyst Rohit Kulkarni, said.
Peloton, which has seen demand for its at-home fitness systems soar due to gym closures, recently posted a 274 per cent jump in quarterly profit for its unit which sells interactive fitness equipment.
An outstanding beneficiary among tech stocks from the shift to work from home is Zoom, whose shares have jumped over 460 per cent this year as corporate firms, schools, and organisations run countless virtual meetings on its video conferencing app.
Amazon.com Inc and Microsoft Corp have seen a substantial boost to their business but the capital they have available for new investment has soared as a result - potentially giving them more leverage going forward.
Shares of video game and e-sports related companies, which benefited from long cancellations of traditional sports leagues, tumbled after Pfizer's announcement, with game studios such as Activision Blizzard and Take-Two Interactive Software ending Monday's session lower.
Gaming peripheral makers such as Turtle Beach and Corsair Gaming also tumbled on Monday, while US listed shares of game developers and e-sports organisers Bilibili Inc and Sea Limited saw their worst day since March.
All, however, are still up between 50 per cent and 350 per cent since March, while Corsair has risen 57 per cent since its initial public offering in September.
"The market is likely discounting a deceleration of growth for the sector in 2021," said Will Hershey, CEO of Roundhill Investments.
"However, I believe that the growth in gaming due to the pandemic likely increased the trajectory of gaming adoption for years to come."
SINGAPORE – Singapore could possibly have a Covid-19vaccine by early next year.
A report in The Straits Times explained the preliminary shipment of the vaccine, which was co-developed with Singapore researchers, is scheduled for the first quarter of 2021.
The American pharmaceutical company, Arcturus Therapeutics, has been collaborating with Duke-NUS scientists on the vaccine, and the company made an announcement on Monday (November 9) that their early-stage clinical trials has had positive results so far.
Alongside this news, the pharma company also shared that Singapore’s Economic Development Board (EDB) is releasing S$60.5 million to complete the vaccine. They also said that the EDB will be given the choice to purchase at pre-negotiated prices of up to US$175 million worth of vaccines.
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Co-developer of the vaccine, Duke-NUS Medical School Professor Ooi Eng Eong, also shared that it seems a single dose could already prove effective.
Professor Eong, who also sits on the Vaccine Platform Scientific Advisory Board of Arcturus, explained that “This differentiates this investigational vaccine from many other Covid-19 vaccines in development.”
“The vaccine has the potential to provide important public health benefits by greatly facilitating broad administration across multiple populations worldwide,” he added.
According to Andy Sassine, Arcturus’ chief financial officer, the Singapore funding will boost the firm’s resources in order to maintain the rapid scale-up of the vaccine. This is also so that the pharmaceutical company can keep up their current agreements with both Israel and Singapore, as well as other possible supply deals that could occur in 2021.
This is not the only vaccine that is finding their preliminary studies to be increasingly promising. Pfizer and BioNTech have also announced that they have a 90 per cent effective vaccine in the works too.
As shared in a straitstimes.com report, Pfizer CEO and chairman Albert Bourla said, “The first set of results from our phase 3 Covid-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent Covid-19.”
As for the Arcturus trials done in Singapore, around 106 volunteers enrolled in the trials with 28 subjects receiving placebos. Moreover, 78 volunteers were given one dose of the vaccine while the remaining subjects were given two injections.
Researchers have watched out for negative side effects within the patients but so far, the findings have been positive in both human immune response and safety. The pharma company also shared that no subjects have withdrawn from the trials, nor have there been any serious adverse responses in patients from the treatment thus far.
With new Covid-19 infections rising every day, and the world count reaching over 50 million infections globally, the hopes for a possible effective vaccine could not come any sooner. -/TISG
LONDON: News of a breakthrough in the race to find a COVID-19 vaccine sparked one of the heaviest trading days since the height of the pandemic crisis, according to early data analysed by Reuters, with nearly US$2 trillion changing hands on Monday.
Traders stampeded to the riskier plays in equities, foreign exchange and bond markets after Pfizer Inc released positive data on its vaccine trial, while rotating out of safe havens such as technology stocks, Japanese yen and top-rated bonds.
"Volumes (are) also surging as programmes and baskets go to work to either correct portfolio balances or address margin calls," said Mark Taylor, sales trader at Mirabaud Securities, highlighting a jump in volumes in the airlines and banking sectors.
In the United States, nearly US$500 billion worth of trades went through stock markets on Monday, one of the busiest days since March, when coronavirus lockdown fears rattled financial markets. Europe saw US$120 billion traded, according to Refinitiv data.
Value stocks, typically companies that are more sensitive to economic cycles, notched their best one-day performance against their growth-focused peers ever in the United States after Monday's news of an effective vaccine against the coronavirus.
A similar trend was noticed in the bond and currency markets where volumes matched the panic trading seen during the depths of the market mayhem in March and double that of April when the coronavirus pandemic slammed into markets.
Total turnover for the 33 currency pairs on CLS, a major settler of trades in the currency markets, totalled US$627 billion on Monday. Average daily turnover was US$707 billion in March and US$380 billion in April.
Bond market turnover also jumped. Nearly 170,000 contracts changed hands on the popular front-month German bund futures contracts , 1.5 times this year's average, according to Refinitiv data.
Total turnover on German government bonds on Monday totalled nearly 9 billion euros (US$10.63 billion), more than the average since the start of October, according to data from Marketaxess, a major trading platform.
"Turnover was about three times the 30-day average daily volumes in cash and very active in the futures space," said Jimmy Conway, head of EMEA equity trading strategy at Citibank.
SINGAPORE - Former Singapore attorney-general V. K. Rajah presided as the sole arbitrator last month in a dispute pitting US e-commerce giant Amazon against a company led by Indian billionaire Mukesh Ambani over a US$3.4 billion (S$4.58 billion) deal.
According to Indian media reports, Amazon had sought to halt a bid by India's Future Group to sell its sprawling retail and wholesale business to Mr Ambani's Reliance Industries.
Amazon had brought the case to the Singapore International Arbitration Centre (SIAC), where an emergency arbitration hearing was held, presided solely by Senior Counsel Rajah. It is understood Amazon had invoked the arbitration proceedings based on a shareholders' agreement inked after it had bought a 49 per cent stake in Future Coupons, one of Future Group's unlisted firms.
For now, Future Group's sale to Reliance will be put on hold, pending a full hearing of the dispute in arbitration proceedings at SIAC.
The deal involves one of the biggest sums in a single case administered by the centre.
Mr Rajah, 63, served as A-G from 2014 to 2017 and as a Judge of Appeal in the Supreme Court from 2007 to 2014. Currently operating from Essex Court Chambers Duxton ( Singapore Group Practice), he is a highly sought-after international arbitrator.
His experience as chair and panel arbitrator covers significant institutional and ad hoc arbitrations where those involved included governments, multinational companies and major international commercial businesses.
SINGAPORE - Several nightlife businesses have welcomed the Government's latest initiatives announced on Friday, such as allowing some operators to resume business by next month or January with strict safe management measures in place.
For a start, there is a limit of 25 businesses that can participate in this two- to three-month pilot.
The aid comes as many businesses have been closed for nine months and counting due to Covid-19 concerns.
But other operators are worried that some of the new measures do not make sense for them because of the costs involved.
Singapore Nightlife Business Association (SNBA) president Joseph Ong said the industry has been looking out for the measures, and the association has received more than 50 queries on the new moves to help operators switch to another business after Friday's announcement.
"There are also a lot of inquiries on the pilot programme, but the number of businesses that can enter it would be small," he added.
Measures they will need to implement include ensuring that customers wear masks on the dance floor and provide proof of negative Covid-19 tests before entering.
Nightlife joints not in the pilot can get financial support to let them either pivot to other business lines, with a grant of up to $50,000, or exit with a one-off payment of $30,000.
Mr Ong said SNBA will help nightlife businesses with pivoting or exiting. "We will be facilitating the whole process - whether they are members or not - and provide them with the necessary link-ups to see what are the best options for them."
Ms Francesca Way, co-founder of A Phat Cat Collective, which runs retro bars and clubs Nineteen80 and Pinball Wizard, said the pilot "is a perfect way to see how we can work in terms of reopening in a post-Covid-19 world".
She does not think the suggested measures, such as tests and masks on the dance floor, are prohibitive.
"At the end of the day, safety is a priority. The fact is that nightlife as it was before needs to change. Covid-19 has changed the way we socialise, and nightclubs have to adapt to that too," she added.
Zouk Group chief executive Andrew Li said "anything we can do to push ahead in terms of opening up this industry again in a safe manner is definitely welcome".
"Zouk Group will do whatever which is within our power to pave a way for nightlife and entertainment to come back, as it is sorely missed in Singapore," he added.
Flexibility in the new measures was requested by some operators.
For instance, if a business gets financial aid under the nightlife measures, it cannot resume nightlife operations for at least 12 months.
But "businesses should be allowed to choose to revert to their core business, if things remain under control and life goes into whatever the new normal is at the time", said Bollywood club Magic Carpet founder Sanjay Rekhi.
Some nightlife businesses are also worried that the new measures will not work after taking costs into account.
Mr Simon Sim, a committee member of the Singapore Entertainment Affiliation, said the general sentiment among karaoke joints is that the pilot programme is "not workable".
The mandatory Covid-19 test is the main obstacle, as the test's cost might outweigh the price of a karaoke session itself. Unlike cruise ship passengers, who might be willing to shell out extra money to pay for the test to board cruise ships, karaoke customers would feel the pinch more as the sessions are relatively cheaper, he said.
"The pilot is a baby step to reopening, and it's better than not opening at all. But it's not very viable," said Mr Sim, who owns Karaoke Times.
The grants given, while welcome, are also far from sufficient for businesses to exit the industry, as they might not even cover the cost of a month's rental owed to landlords, he added.
"I don't think it helps that much, but it is better than nothing."
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