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IHF Sustains the Biotech Sell-off, Loses Marginally

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IHF: The pick among biotech ETFs

The markets managed to end on a positive note for the week ended December 4, 2015. The S&P 500 rose 0.05%, but biotech ETFs ended the week with negative returns.

The sell-off that took down one of the days that week weighed heavily on biotechs. The iShares US Healthcare Providers ETF (IHF) was the best-performing biotech ETF, and the SPDR S&P Biotech ETF (XBI) was the worst.

IHF rose 0.85% for the week and closed at $124.19. It was trading 4.8% lower than the 100-day moving average price of $130.47 and 0.5% higher than the 20-day moving average price of $123.57. IHF recorded an average volume of ~67,000 shares per day for the week compared to ~127,000 shares per day for the prior week ended November 27, 2015.

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On the other hand, XBI lost 2.7% for the week and closed at $70.29. It was trading 4% lower than the 100-day moving average price and a little lower than the 20-day moving average price. XBI traded ~3.5 million shares per day for the week compared to ~2.2 million shares for the week ended November 27, 2015.

Leaders and laggards

Relypsa (RLYP) was the runaway stock for the week, rising 21.5%. The stock rose on a takeover rumor, possibly by Merck (MRK). The stock closed at $29.14 and was trading above the 20-day, 50-day, and 100-day moving averages.The book value per share is $5.47 with a PBV (price-to-book value) of 5.33x.

The worst performer for the week was Kite Pharma (KITE), which fell 18.5%. It appears that the stock fell on profit booking. Investors might not have been impressed with the news of initiating the Zuma-3 Study and the announcement of a strategic collaboration with GE Global Research. KITE closed at $70.44 and was trading above the 100-day moving average.

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