XBI’s best trading day
The markets ended high as biotechnology and energy stocks surged. The Dow Jones Industrial Average gained 0.6% on April 6, 2016. Oil prices also ended high as the Fed indicated that a rate hike in April is unlikely. Biotech and healthcare stocks were the highlights of the day along with energy stocks. The SPDR S&P Biotech ETF (XBI) witnessed the best trading day year-to-date in terms of gains. Finally, Pfizer (PFE) and Allergan (AGN) confirmed that they have called off the merger.
The above chart shows the SPDR S&P Biotech ETF, the SPDR S&P 500 ETF, and some of XBI’s top gainers on April 6, 2016. XBI closed at $57.59 and was trading above the 20-day moving average. With this gain, the fund has cut down its year-to-date loss from ~25% to ~18%. Out of 101 stocks in XBI’s portfolio, 100 stocks advanced on April 6, 2016.
The top gainers within XBI include Raptor Pharmaceuticals (RPTP), Sarepta Therapeutics (SRPT), and Anacor Pharmaceuticals (ANAC), which went up by 24.4%, 19.3%, and 16.5%, respectively. Raptor Pharmaceuticals went up on news that the company is in talks with investment banks for a possible sale. Raptor Pharmaceuticals closed at $5.81 and was trading above its 20-day and 100-day moving averages. Year-to-date, the stock has outperformed with a return of 11.7%. Nearly 3.2 million shares were traded for the day. The relative strength index of the stock is at 76, indicating that the stock has moved into an overbought situation. The book value of the stock is at $1.37 per share. With its current price, the stock is trading at a price-to-book value (or PBV) of ~4.2x. It has a weight of ~0.4% in XBI’s portfolio.