XBI Tops Biotech ETF’s for the Week Ended November 27



XBI tops the biotech ETFs

The markets for the week ended November 27, 2015, were subdued given a shortened week. The markets remained flat and witnessed a lower trading volume than the regular trading volumes. The S&P 500 gained 0.4%, and the Dow Jones Industrial average rose by 0.05% during the week. However, the biotech industry outperformed other industries and gave positive returns. The iShares Nasdaq Biotechnology ETF (IBB) gave a return of 2.3%, the Health Care Select Sector SPDR ETF (XLV) rose by 1.7%, the iShares US Medical Devices ETF (IHI) returned 1.8%, the iShares US Healthcare Providers ETF (IHF) rose by 4.1%.

Meanwhile, the SPDR S&P Biotech ETF (XBI) outperformed all other ETFs and gave returns of 4.6% for the seven days ended November 27, 2015.

The above graph reflects the performances of different biotech ETFs in comparison with the SPDR S&P 500 ETF (SPY) for the week ended November 27, 2015.

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Leaders and laggards for the week

Sarepta Therapeutics (SRPT) was the top stock for the week with a gain of 43.5%. SRPT gained on the negative opinion by FDA (US Food and Drug Administration) on its competitor BioMarin’s (BMRN) Kyndrisa for the treatment of Duchenne muscular dystrophy (or DMD). Analysts view that SRPT—also developing a drug for DMD—is in a better position than its competitors.

SRPT closed at $37.4 and was trading 15.2 % above the 100-day moving average price of $32.5. However, the stock’s RSI (Relative Strength Index) is at 72, indicating that the stock has moved into an overbought situation temporarily. SRPT has a weight of 0.15% and 0.8%, respectively, in IBB and XBI.

Another stock that gained was Celladon (CLDN), rising by 26.1%. Also, Celldex Therapeutics (CLDX) gained 23% for the week. Finally, BMRN and Mannkind (MNKD) were the laggards for the week, with returns of 6.5% and 13.7%, respectively.


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