New variants and winter months potential wildcards

New variants and winter months potential wildcards says Hong Leong Investment Bank, adding this could surcharge the COVID-19 virus spread.

While vaccination rates in key markets are progressing well (and resulting in lower daily Covid-19 cases), we note that US and UK have relaxed lockdown rules, allowing large-scale gatherings.

“Despite this, there is growing evidence that vaccines may be less effective against new variants, particularly the delta variant. Note that while Covid-19 daily cases have declined in the US, the delta variant has roughly doubled every two weeks in the US.

“Coupled with the finding that Covid-19 (like seasonal flu) is more active during winter months (note that cases in US and UK peaked during winter), we reckon it is too early to rule out the possibility of cases rising in key markets again in the coming months. It would inevitably increase the demand for disposable gloves,” the analyst firm say.

It says with vaccines appearing less effective against certain new variants and winter towards year end; “we do not rule out the possibility of Covid-19 cases rising again, despite vaccination efforts in key markets.”