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  • ASX 200 storms 2% higher: Big four banks jump on COVID-19 vaccine news

    Upward Trending Data Image

    At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 2% to 5,568.7 points.

    Here’s what has been happening on the market today:

    ASX 200 jumps on Moderna coronavirus vaccine news.

    The ASX 200 is racing higher today after U.S. biotechnology company Moderna released phase one trial results for its coronavirus vaccine candidate, mRNA-1273. The results showed that the vaccine produced COVID-19 antibodies in all 45 participants. Moderna is aiming to start a phase 3 trial in July. This has sparked hopes that an effective vaccine could be ready in the near future.

    Big four banks charge higher.

    The shares of the big four banks have all responded positively to this development. All four banks are trading notably higher at lunch. The best performer in the group has been the Westpac Banking Corp (ASX: WBC) share price with a gain of almost 4.5%. Investors may believe the banks have overestimated the provisions that will be required during the crisis.

    TechnologyOne results.

    The TechnologyOne Ltd (ASX: TNE) share price is sliding lower on Tuesday after its half year update disappointed the market. The enterprise software company posted a 6% lift in both sales and profits during the half. This was driven by strong growth in its SaaS business once again. In respect to the full year, management expects net profit before tax to increase 8% to 12% year on year. Some investors may believe this growth doesn’t justify the premium its shares trade at.

    Best and worst ASX 200 performers.

    The best performer on the ASX 200 at lunch is the James Hardie Industries plc (ASX: JHX) share price with a 10% gain. Investors have been buying the building products company’s shares after the release of a strong full year result. The worst performer is the Regis Resources Limited (ASX: RRL) share price with a 5% decline. Investors have been selling the gold miners after demand for safe haven assets reduced.

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    Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post ASX 200 storms 2% higher: Big four banks jump on COVID-19 vaccine news appeared first on Motley Fool Australia.

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  • MIT Professor’s Moderna Stake on Brink of Topping $1 Billion

    MIT Professor’s Moderna Stake on Brink of Topping $1 Billion(Bloomberg) — Another early investor of Moderna Inc. is on the cusp of owning a stake worth at least $1 billion after the biotech firm reported encouraging early trial results for an experimental Covid-19 vaccine.The value of board member Bob Langer’s 3.2% holding, including stock options, rose to $934.3 million Monday, as the shares surged 20% to a record $80 each. Langer, a professor at the Massachusetts Institute of Technology, would be at least the third individual with Moderna holdings topping $1 billion, joining Chief Executive Officer Stephane Bancel and Harvard University professor Timothy Springer.Moderna, whose shares have more than quadrupled this year, released interim data from a small phase 1 trial showing positive early signs that the vaccine can create an immune system response to the virus in humans. The news helped fuel a broader surge in stocks, with the S&P 500 Index advancing 3.2%, the most since April 8.The company priced a stock offering to fund manufacturing of its coronavirus vaccine at $76 a share, 5% below the last close, people familiar with the deal said after Monday’s market trading.Langer, 71, has licensed or sub-licensed patents to more than 400 biotech, pharmaceutical, chemical and medical companies, according to his biography at MIT’s Langer Lab.Bancel and Springer own stakes worth $2.45 billion and $1.38 billion, respectively, according to the Bloomberg Billionaires Index. The biggest beneficiary of the stock surge is top shareholder Flagship Pioneering Inc., a firm started by Moderna co-founder Noubar Afeyan. Flagship distributed 10 million shares to investors last week, leaving it with an 11% stake worth $3.27 billion. Afeyan declined to elaborate when asked about how much of the stock he owns individually.“The broader market reaction is a measure of the need people have to perceive that there’s a scientific, technological solution to this kind of battle,” Afeyan said in a phone interview. “We’ve increased expectations, but that hasn’t changed what we do.”‘Warp Speed’Bancel and other Moderna executives, including outgoing Chief Financial Officer Lorence Kim and President Stephen Hoge, have been selling shares, some through prearranged trading plans. Bancel has sold about 200,000 shares since Feb. 21, data compiled by Bloomberg show.Moncef Slaoui, who owned 82,508 shares as of Feb. 21, stepped down from Moderna’s board last week and plans to divest his stake to help lead “Operation Warp Speed,” a Trump administration effort involving the private and public sectors to accelerate the development of a vaccine, the company said in an emailed statement.Slaoui intends to donate the incremental value accrued from his Moderna stake since the May 14 close to cancer research, Caitlin Oakley, a spokeswoman for the U.S. Department of Health & Human Services, wrote in an email.Moderna Insiders Get Fresh Chance to Cash Out After 200% SurgeOther major shareholders include AstraZeneca Plc and Theleme Partners, the hedge fund of Patrick Degorce, a former partner of the Children’s Investment Fund.(Updates to add stock pricing in fourth paragraph, HHS comment in second-to-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Why James Hardie, Oil Search, Webjet, & Westpac shares are jumping higher

    beat the share market

    The S&P/ASX 200 Index (ASX: XJO) has followed the lead of international markets and is storming higher on Tuesday. In late morning trade the benchmark index is up 2% to 5,569.9 points following positive COVID19 vaccine news.

    Four shares that are climbing more than most today are listed below. Here’s why they are jumping higher:

    The James Hardie Industries plc (ASX: JHX) share price has stormed almost 11% higher to $23.75. Investors have been buying the building products company’s shares after the release of its full year results. James Hardie delivered a 4% increase in revenue to US$2.61 billion and a 20% lift in EBIT to US$486.8 million for the year ended March 31.

    The Oil Search Limited (ASX: OSH) share price has jumped 9% to $3.27. The catalyst for this strong gain was a sharp rise in oil prices overnight. Traders appear optimistic that a vaccine could open up economies much quicker than expected and lead to an increase in demand for oil. The S&P/ASX 200 Energy index is up 4.5% at the time of writing.

    The Webjet Limited (ASX: WEB) share price has surged 6% higher to $3.33. Once again, this strong gain appears to have been driven by the vaccine news. The travel sector would be a big winner if this vaccine solves the COVID19 crisis. It could mean that international travel returns much sooner than the market was expecting, which would only be good news for travel bookers like Webjet.

    The Westpac Banking Corp (ASX: WBC) share price is up 4.5% to $15.58. Australia’s big four banks have responded very positively to today’s development and are all notably higher. If the crisis ends earlier than expected, it could mean the banks have all overestimated the provisions that will be required. This could have positive consequences for future dividend payments.

    Missed out on these gains? Then don’t miss out on these dirt cheap shares before they rebound…

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    More reading

    Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Why James Hardie, Oil Search, Webjet, & Westpac shares are jumping higher appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2z2bcb8

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