- Csl stock and wider health index improving.
- Health has lagged the broader index since COVID began.
- ASX up 6% since Jan. 1 versus 0.4% for health index.
The first four months of 2021 have provided a near term tailwind for the ASX as banks and technology companies build on strong economic activity while the health sector continues to lag the broader market.
One of the major weightings on the ASX health index is blood plasma and vaccine manufacturer, Csl whose share price performance in the last 12 months has belied its stock market ?darling? status.
In 1994, the former Commonwealth Serum Laboratories was listed at $2. Twenty-five years later, the stock price has touched $300 but retreated back below $250 in the last six months.
Csl's under performance has in large part been influenced by media reporting around the incidents of blood clotting in the AstraZeneca COVID vaccine, of which Csl was providing domestic production.
However, as more data becomes available and the efficacy of the vaccine becomes more apparent as the effect of underlying health conditions (comorbidities) is better understood, Csl?s share price has gained 4% in the last month.
With the wider index currently testing decade highs and health companies such as Csl trading at a discount, investors may opt to take another look at a blue-chip that is a mainstay of most household portfolios.