Cineworld Group (LON:CINE) shares rally 29.13% to 52.1p on the back of vaccine news
Shares in the world’s biggest cinema chain, Cineworld Group, continued to gain ground this morning following yesterday’s news that the coronavirus vaccine being developed by Pfizer and BioNTech has been found to be 90% effective in preventing people from getting the virus.
Cineworld is one of many travel and leisure stocks, which have been the hardest hit by the pandemic, that are amongst the best performing sectors on the stock market since yesterday.
Similarly, the AIM-listed cinema group, Everyman Media Group, also saw some light relief yesterday - up over 40 % -despite the closure of all of its venues under the new guidelines.
“The Pfizer announcement is not yet a panacea, but adds to investor sentiment which had already been buoyed by the Biden victory, and has sent markets to strongly positive levels,” commented Richard Hunter, Head of Markets at Interactive Investor, City A.M. reported.
Despite still only being worth a fifth of their value at the start of the year and having most of its branches closed, shares in Cineworld have almost doubled since the beginning of the week.
Arena Events Group (AIM:ARE) shares jumped 50% to 8.25p as it maintains financial stability
This morning, Arena Events, the provider of temporary physical structures, seating, ice rinks furniture and interiors released a trading update for the six months ended 30 September 2020
Despite results in all markets being impacted by the widespread prohibition on mass gatherings due to the COVID-19 pandemic, the company reported that it was Adjusted EBITDA positive and cash neutral for the six-months ended 30 September 2020.
However, due to certain restrictions and the ban on mass gatherings, group revenue fell from £88.3m in 1H19 to £42.8m in 1H20 while gross profit fell from £24.9m to £14.8m in 1H20.
Despite the challenging trading environment, Arena said significant overhead cost reductions helped protect its Adjusted EBITDA margin at 10.3% while in the UK and Europe the group delivered numerous structures for temporary COVID-19 medical facilities and testing centres.
Post-period, Arena announced that it has signed a multi-million pound contract extension for the rental of 26,000 seats to the Tokyo 2020 Olympics, which is now due to be held in 2021.
The company told investors that it is well positioned to withstand the financial consequences of the pandemic due to the various measures we have undertaken over the last nine months.
‘Whilst we do expect our existing cash balances to reduce over the next six months, we believe we have access to sufficient resources to give us the confidence that we will be able to come out the other side of this pandemic with a business that will be able to capitalise on the many opportunities that will present themselves later next year,’ the company added.
The City Pub Group (AIM:CPC) shares increased 21.53% to 87p as pub shares rally
The Board of City Pub Group has today announced the appointment of Toby Smith to the Board as Chief Operating Officer of the Company, a newly created role, with effect from today.
Smith, who has over 25 years' experience in UK hospitality, held CEO roles with Stonegate Pub Company, Novus Leisure and Town and City Pub Company. Prior to these, he also held senior roles at Laurel Pub Company, Spirit Group and Scottish and Newcastle Retail.
In light of the current trading conditions, Alex Derrick, Joint Managing Director, by mutual agreement, will step down from the Board and leave the Company as of today, it noted.
''The challenges of COVID will also bring opportunity and we are seeking to position ourselves to take advantage of opportunities which undoubtedly will arise,” said Clive Watson, Executive Chairman of City Pub Company.
According to Evening Standard, Investors have also piled into pub shares yesterday, stocks which have recently been hammered by enforced closures and reduced opening hours.
London-listed pub chains including Marston’s, Mitchells & Butlers, JD Wetherspoon, Young’s and City Pub Group, respectively gained 17%, 19%, 12.5%, 19.5% and 17.5% yesterday.
Young’s CEO, Patrick Dardis said, “This is the first bit of good news since March. It is huge, a real game changer, and should give us all hope that the ‘old normal’ is not yet a lost cause.”
Nostra Terra Oil & Gas (AIM:NTOG) shares rose 21.43% to 0.425p as it spuds oil field well
The Texas-focused oil & gas exploration and production company announced this morning that the Cypress farm-out well at the Company's Pine Mills oil field has now spudded.
Nostra Terra owns a 32.5% working interest ("WI") in the planned well, which includes a 25% carried WI. The group said drilling will be followed promptly with logging and then completion.
Drilling will be permitted to a total depth of 6,000 feet and is estimated to take approximately 10 days. The company told investors that the primary target formation is the prolific Woodbine Sand, while the well will also evaluate several other known overburden formations.
"The result of this well can have a significant impact for the Company in terms of cash flow as well as an increase in reserves, also leading the way to additional development in Pine Mills,” said CEO, Matt Lofgran.
He added, “Additionally, we continue progressing our portfolio further with the recent farm-in to the Permian Basin acreage, with the acquisition of the Caballos Creek asset, and assessment of other potential opportunities in line with our previously stated goals."
Premier Foods (LON:PREM) shares fell 7.41% to 96.75p despite lifting guidance as food stocks take a hit
The food manufacturer reported a profit increase of nearly 30% in the six months to 26 September 2020 as more people took to eating at home during the national lockdown.
The Hertfordshire-based producer said revenue for 1H20/21 was increased by 15% to £421.5m from £366.7m in 1H19/20 while pre tax profit soared to £50.5m (1H19/20: £15m). After "exceptional" demand throughout lockdown, the group gained over a million customers.
Chief executive Alex Whitehouse said: "The longevity of this increased demand is likely to be linked to the duration of these new measures."The company said it expected to continue to see its income grow and forecast that its full-year profits would beat analysts' predictions.
Despite the positive trading update, food delivery stocks were amongst those yesterday that took a hit on the back of news that a potential COVID-19 vaccine could be manufactured.
‘One of the few luxuries available throughout various lockdowns has been takeaway food delivery, through apps such as Just Eat,’ the Guardian wrote, with shares having fallen by 9%. ‘If vaccines allow lockdown to ease, that spending could move back to restaurants’,’ it said.
Similarly, grocery delivery retailer, Ocado, which was described as ‘one of the biggest beneficiaries of the rapid rise in online shopping during the pandemic’ lost 12% in value.
‘Although it fell back on Monday, many analysts think the pandemic has permanently expanded its market,’ the Guardian wrote on Monday.