Forget the political wrangling with China.
Put aside the still myriad unresolved issues with the United Kingdom's departure from the European Union.
And Kim Jong-who now?
With the world entering its 7th month of pandemic-fuelled strife, trade wars, Brexit, and nuclear armed rogue nations are off the menu. All eyes are fixated on effective treatments and the eventual silver bullet vaccine to slay our microscopic foe, COVID-19.
Aside from the terrible mounting death toll, the virus has hamstrung businesses, households and governments across the globe since March.
On a national level, economic growth (GDP) is slowing in almost every nation, and GDP is actually shrinking in many. With some notable exceptions — largely in the technology and health sectors — company earnings have taken a big hit from the social distancing and lockdown measures put in place to slow the virus' spread. Unemployment is up sharply, income growth remains elusive, and debts are piling up to levels that may take decades to repay.
But in this fight against 7.8 billion humans armed with the latest in 21st century technology and accumulated knowledge, the smart money is increasingly betting against the coronavirus.
Image source: Getty Images
Advantage humans
Over in the US, Allied BioScience is opening a new front against the virus in the form of its product, SurfaceWise2. Catchy name aside, it's applied by electrostatic spray to create a protective invisible layer that kills viruses. It reportedly kills COVID-19 on surfaces for a period of 90 days.
Yesterday (overnight Aussie time) Allied BioScience announced that the US Environmental Protection Agency (EPA) had given Texas-based companies a waiver to use SurfaceWise2.
American Airlines Group Inc was quick to jump on the waiver. In its announcement yesterday, American Airlines said it will be the first airline to use SurfaceWise2 as its electrostatic spraying solution:
In the coming months, American will begin using SurfaceWise2 for electrostatic spraying on surfaces inside its aircraft with plans to use the product throughout its entire fleet, including those in its American Eagle regional partners.
The American Airlines' share price closed up 10.5% yesterday. And the share price is up another 2.5% in after-hours trading. Though shares are still down 56% from this year's 12 February peak.
Allied BioScience shares trade on the US over-the-counter (OTC) markets. Shares on OTC markets aren't listed on a centralised exchange, but rather traded via broker-dealer networks. The Allied BioScience share price gained 31.9% on yesterday's announcement.
The final answer could usher in a share market boom
Stopping the coronavirus from lingering on surfaces is a big step towards slowing its spread.
But the final answer lies in effective treatments and a mass-produced vaccine to return travel, work and life to normal.
On that front, hundreds of leading companies are involved in developing a vaccine. And powerhouse nations like China, Russia, the UK and the United States are pushing ahead with human trials.
Over the weekend the US Food and Drug Administration (FDA) announced that it was working to increase access to a promising new treatment that employs blood plasma from people who have recovered from the virus. And US President Donald Trump is reportedly considering using his clout to fast track an experimental vaccine. Hoping, no doubt, for significant success before the November presidential elections.
With an eye on the prize, investor sentiment is driving new share market gains.
Technology share prices hit new records
While most share prices are on the upswing, technology shares continue to lead the charge.
Over in the US the NASDAQ-100 Index (NASDAQ: NDX) closed up 0.6% for another new record high. Year-to-date, the index of the biggest 100 US-listed technology related stocks is up 31%. Since the March low, it's gained 66.2%.
But it's not just US technology shares that are soaring.
Here in Australia, the share price of buy now, pay later (BNPL) darling Afterpay Ltd (ASX: APT) is rocketing again today, up 6.5% in late morning trade. That puts Afterpay's share price gains at 28.4% so far in August, and the share price is up a smashing 188% since 2 January.
Afterpay received a welcome boost in today's trading (as if it needed one) after broker Morgan Stanley raised its target for the BNPL leader to $106 per share. That's more than 20% above Afterpay's current share price of $88.05.
BNPL rival Zip Co Ltd (ASX: Z1P) is also trading at new record highs. The Zip share price is up 3.9% in intraday trading and up more than 118% year-to-date.
Joining them in record high territory is electronics retailing giant JB Hi-Fi Limited (ASX: JBH). JB Hi-Fi's share price is up a more sedate 0.5% in today's trading and up 35.5% in so far in 2020.
Though these stocks are leading the way higher, the performance of the All Ordinaries Index (ASX: XAO) shows that that rising investor sentiment spreads well beyond the favoured technology shares.
The All Ords is still down 7.0% year-to-date. But it's in the green again today, up 0.5%, with a remarkable 38.8% rebound since the 23 March low.
If and when a vaccine eventuates, and global economies begin to emerge from their cocoons, the best placed companies could make the ASX share price gains of the last few months pale in comparison.
