The CSL Limited (ASX: CSL) share price has gone through plenty of volatility in 2022, just like the S&P/ASX 200 Index (ASX: XJO). But what happened in September?
Shares in the biotech giant started the year at around $291 and are now sitting at just over $283. So, there has been a bit of a decline this year.
But market declines have gone further recently as investors get used to the higher interest rates as central banks try to tackle strong inflation.
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How did the CSL share price perform in September?
Last month, CSL shares dropped by around 3%. Zoom in further and we see that between 8 September 2022 and the end of the month, they fell by approximately 5%.
How does this compare to the ASX 200? Let's have a look.
In September, the ASX 200 declined by 7.3%. From 8 September 2022 to the end of the month, it dropped by 5.5%.
So that means that CSL outperformed the ASX 200 by 4% over the month of September.
For one of the ASX's biggest companies (as measured by market capitalisation), that much outperformance in a short amount of time is useful for shareholders.
Why did it outperform?
Ultimately, it's up to the buyers and sellers to decide what prices to transact at.
ASX healthcare shares can have a reputation for being defensive and having resilient earnings. It's possible that CSL's profit could stay robust, even during economic difficulties.
Another factor to consider is that CSL reports its financials in US dollars. The Australian dollar started September worth US 68 cents but by the end of the month, it had fallen to US 64 cents. Assuming it generates the same profit in US dollar terms, a lower Aussie dollar gives support to the CSL share price, which is valued in Australian dollars.
Investors may also be taking into account the guidance that the company gave when it released its FY22 result. The guidance can influence investor thoughts about the CSL share price.
CSL said that it had a "strong mid-term outlook" as COVID receded, and a "promising cluster" of research and development programs that were nearing completion.
The company said that it was expecting "strong" plasma collections, though the higher cost of plasma was continuing. It's rebuilding inventory to strengthen resilience.
In its vaccine business, CSL said that there was ongoing northern hemisphere demand for flu vaccines and it expected continued growth from product differentiation.
But, CSL did acknowledge it was continuing to navigate a "challenging external cost environment".
Excluding the impact of the Vifor acquisition, the company expected to generate net profit after tax (NPAT) of between US$2.4 billion to US$2.5 billion in FY23. That compares to FY22 net profit of US$2.25 billion. Profit, and expectations of profit, can have a big impact on the CSL share price.
