Why has the CSL share price lagged the ASX 200 over the past week?

CSL shares have been treading lower of late…

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Key points

  • CSL shares have shed 1.48% over the past week
  • Investors seemed to have turned their attention to the rising ASX 300 Metals & Mining sector following a commodity boom in recent times
  • CSL previously advised that the Vifor Pharma acquisition is expected to be delayed by a few months

The CSL Ltd (ASX: CSL) share price has edged 1.48% lower since this time last week.

While the global biotech hasn’t released any market sensitive news in that time, investors have been offloading the company’s shares.

CSL shares closed a further 0.73% down on Monday at $273.15 each.

What’s weighing down CSL shares lately?

A couple of factors are playing against CSL shares for the moment as the COVID-19 pandemic begins to subside.

First and foremost, the S&P/ASX 200 Health Care index (ASX: XHJ) has reversed its gains over the past week, down 0.3%. The index closed another 0.16% lower today.

Investors appear to have focused their efforts on better performing ASX sectors such as the S&P/ASX 300 Metals & Mining (ASX: XMM) index. This consists of the top 300 ASX companies that are involved with gold, steel, and precious metals.

For context, the Metals & Mining sector has soared 5.96% from this time last Monday.

And it’s no surprise that commodity prices have skyrocketed, given the war in Ukraine and inflationary movements.

Market psychology can be a powerful force when crowd behaviour chases market rallies or selloffs during downturns.

Another factor that has led CSL shares to fall is the delay to complete the acquisition of Vifor Pharma.

Originally, the deal was due to be wrapped up by June 2022. However, receiving regulatory approvals is taking a little longer.

As such, CSL now expects the takeover to be finalised within the next few months.

CSL share price snapshot

Uncharacteristically, it has been a turbulent year for CSL shareholders, recording a loss of 4% over the last 12 months.

Year to date has not fared any better with the company’s shares down 6%.

Based on valuation grounds, CSL commands a market capitalisation of roughly $131.5 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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