What Happened to the CSL Limited Share Price?
CSL Limited [ASX: CSL] is a biopharmaceutical company involved in research, manufacturing and product marketing. CSL develops a range of products to treat viral and bacterial illnesses, bleeding disorders and coagulation disorders such as blood clotting.
CSL closed down on Friday 3.48%
Why Did This Happen to CSL Shares?
On Thursday night our time, the DOW in America fell a whopping 317 points. The S&P 500 dropped 2%, and the NASDAQ was 2.1% lower — all on the assumption that the Federal Reserve Bank will raise interest rates soon.
The Dow Jones US Biotechnology Index was down 2.38% overnight as well.
That sort of market sentiment is hard to escape.
Most of CSL revenue comes from markets like Germany and America.
What Now For CSL Limited?
CSL has been in a strong uptrend since early 2012. In that time, the share price has risen from $31 per share to $72. It has seen some selling pressure so far this year.
It’s currently trading at $65.
CSL has numerous products in the pipeline. CSL is increasing research and development spending by 13% in 2014.
If there is a longer sell off in the market, there would be very little technical support for CSL. Another bad day in America could drive the share price as low as $62 in the short term.
However, long term, this is a solid defensive company to own. This sell-off could present a buying opportunity.
Editor, Money Weekend