By midday on Tuesday the ASX healthcare sector was trading firmly in the red. The sector was down an average of 1.2%, well below the ASX fall of just 0.2%.
There are few obvious reasons why the sector as a whole has been hit today. One possible scenario is that investors are taking profits after a spectacularly profitable year where the sector has risen by 22.4% versus a 1.8% gain in the S&P/ASX 200 (INDEX ASX: XJO).
The best performers have been:
CSL Limited (ASX: CSL) up 28%
ResMed Inc. (CHESS) (ASX: RMD) up 32%
Ramsay Health Care Limited (ASX: RHC) up 32%
Sonic Healthcare Limited (ASX: SHL) up 13%
Healthscope Ltd (ASX: HSO) up 22%
Pharmaxis Ltd. (ASX: PXS) up 61%
Long term investors in many of the companies above would have experienced many days like today, where short term investors or traders exit the sector on fears that it's too expensive. Many of the companies above remain among the best on the ASX and today's fall will barely register on the long-term price chart.
