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Profit Taking in XBI Holdings Pulled the Fund Down

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Profit taking in XBI holdings

The US markets remained flat on March 3, 2016. The Dow Jones Industrial Average gained 0.25%, and the SPDR S&P 500 ETF (SPY) gained 0.4%. However, the biotech sector witnessed some profit booking. The SPDR S&P Biotech ETF (XBI) went down by 1.1% to close at $51.72 and was trading above the 20-day moving average price of $48.7. Among the 102 stocks that XBI holds in its portfolio, 37 stocks remained positive while 65 stocks were negative. Year-to-date, XBI has returned -26.3%.

The above table gives investors information about XBI and its top gainers on March 3, 2016.

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Top gainers

The top three gainers of XBI for March 3, 2016, were Raptor Pharmaceuticals (RPTP), Keryx Biopharmaceuticals (KERX), and Agenus (AGEN), which gained 6.9%, 6.5%, and 5.9%, respectively, for the day. Raptor Pharmaceuticals and Keryx Biopharmaceuticals stocks went up as they announced that they will be participating in the Cowen and Company 36th Annual Health Care Conference that will be held from March 7 to March 9, 2016, in Boston.

Raptor Pharmaceuticals closed at $4.01 and was trading above its 20-day moving average. Year-to-date (or YTD), the stock is down by 22.9%. Raptor has a book value of $1.37 and with its current price, the stock is trading at a price-to-book value (or PBV) of ~2.9x. Raptor has a weight of ~0.4% in XBI’s portfolio. Keryx Biopharmaceuticals closed at $5.08 and was trading above its 20-day moving average. The stock has given a positive return of 0.6% YTD. Keryx has a book value of $1.15 per share and with its current price, the stock is trading at a price-to-book value of 4.42x. Keryx has a weight of ~0.6% in XBI’s portfolio.

On the other hand, Agenus announced its 4Q15 results. It reported a net loss of $0.18 per share compared with a net loss of $0.41 per share in 4Q14. The stock gained 5.9% as the net loss gap contracted. Agenus closed at $3.4 and was trading above $2.91. The stock has a book value of $0.53 per share and with its current price, the stock is trading at a price-to-book value of ~6.4x. Agenus has a weight of 0.3% in XBI’s portfolio.

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