The share price of Avacta (LSE: AVCT) became the latest stock to join the resurgence seen in stocks with a short-term focus on COVID-19 testing.
Over the past five days, Novacyt has seen its share price soar by over 20%, Omega Diagnostics up by nearly 25% and Abingdon Health an eye-watering 134% increase at the close of the markets on Wednesday.
Today alone, Avacta itself saw a 25% increase in its share price, contributing to a circa 30 percent gain over the past five days in total.
The surge in Avacta and Omega Diagnostics has occurred despite no material official updates.
Investors will also note that the Avacta has a substantially larger m.cap than a number of those aforementioned, so there would have been subject to a greater deal of buying activity to move the share price on relative terms.
Why has Avacta’s share price soared?
The soaring Abingdon Health share price is what has acted a catalyst for a number of these movements.
Just as it looked down and out, Abingdon Health produced a promising update on the manufacturing of a rapid self-test for COVID-19 antibodies on a global basis. It also highlighted that it has a number of announcements due in the pipeline as its m. cap slumped way below its IPO price.
This appears to have given heart to investors that there is further upside to come in some of the so-called ‘COVID-19’ stocks that found themselves relatively unloved in recent months.
Backing this up is also an unfortunate reminder that COVID-19 remains within society, even with the progress of vaccines.
Facts show that cases are rising globally and studies also show that some immune responses are not as strong to the vaccine as others as well as the notion that vaccine protection can fade earlier than 6 months. This means that both antibody and antigen tests have a role to play especially as economies have unlocked with the Winter ahead.
Despite the seeming snub by the UK government for all of these stocks in various capacities, many investors will argue that relatively little has changed as the bigger market spans across borders rather than solely within the UK.