18 Nov

XBI Rises in Contrast to a Flat Market


XBI rises in a flat market

The market remained flat on November 17, 2015. The Dow Jones Industrial Average rose just 0.05%. In contrast, the S&P 500 fell by 0.15%.

The biotech (biotechnology) sector moved in the opposite direction of the market. The SPDR S&P Biotech ETF (XBI) rose 0.75% on November 17, and the iShares Nasdaq Biotechnology ETF (IBB) rose 1.3%. In contrast, the broader market representative, the SPDR S&P 500 ETF (SPY), fell by 0.05%.

XBI Rises in Contrast to a Flat Market

The market breadth for biotech stocks was positive. Out of XBI’s 101 holdings, 70 stocks ended in the positive, while 31 stocks ended in the red. XBI closed at $68.65 on November 17 and was trading below its 50- and 100-day moving averages.

The above graph reflects the performance of XBI in comparison to SPY. Since the beginning of November 2015, XBI has returned 3.3%, while SPY has returned -1.2% in the same period. So far, XBI has outperformed SPY.

PTC Therapeutics gains 7.3% on high trading volumes

PTC Therapeutics (PTCT) rose 7.3% and was the top performer within XBI. The stock rose on high trading volumes, with ~1.3 million shares being traded compared to its five-day average trading volume of ~768,000 shares per day.

PTCT closed at $33.09 and was trading above its 50-day moving average but below its 100-day moving average. The RSI (relative strength index) of the stock is at 56, indicating that it is neither overbought nor oversold.

PTCT has a book value of $7.34 per share. With its current price, the stock is trading at a price-to-book value (or PBV) of 4.51x. PTCT will be presenting at the Stifel 2015 Healthcare Conference held on November 18, 2015. PTCT has a weight of 0.90% in XBI’s portfolio.

Other stocks that performed well were bluebird bio (BLUE), Novavax (NVAX), and Incyte (INCY), which gave returns of 7.0%, 6.6%, and 5%, respectively.

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