A quick snapshot of ASX healthcare index

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A quick snapshot of ASX healthcare index

Recovering stock market
Image source: © Blackboard373  | Megapixl.com

Highlights

  • Sectoral indices provide investors with benchmarks to track stocks against their specific sectors.
  • Eight out of eleven official sectors of ASX ended higher on Monday
  • Market sentiment seems to be getting better after the declaration by Shanghai to end its COVID-19 lockdown on 20 May.

An index comprises a set of stocks and helps in keeping track of a particular market or sector. A sectoral index provides investors with a benchmark to track a stock against a specific sector.

There are many companies listed on a stock exchange, out of which indices screen out a few ones based on market capitalisation, sector or any other parameter. Indices are a benchmark and a standard reference for the entire stock market.

This week, the S&P/ASX 200 index made a green start to the week by closing with a gain of 0.25% on Monday. Eight out of eleven sectors closed higher yesterday with industrials being the best performing sector with a rally of 2.42%.

Market sentiment might have received a boost with China’s Shanghai announcing its decision to end COVID-19 lockdown on 20 May.

Related read: ASX 200 storms 1.9% higher in third-biggest daily gain of 2022

How is the ASX Healthcare Index performing?

The benchmark of the Australian healthcare sector, S&P/ASX 200 Health Care, seems to be trading on a lower note this week after making a green closing on Friday. The index closed off Monday with a loss of 0.60%. The index continued its downtrend on Tuesday, trading at a loss of1.24%, at midday.

The S&P/ASX 200 Healthcare provides investors with a sector benchmark for the companies included in the S&P/ASX 200 classified as members of the GICS® healthcare sector and sub-industries. The index was launched on 02 July, 2002, and it uses the float-adjusted market cap weighting method.

The index has a total of 14 constituents. Australia holds 92.2% weightage in the index regarding geographical breakdown, followed by the United States (6.3%) and New Zealand (1.5%).

Let us have a quick glance at trends in returns of the index for the past ten years.

Price return by healthcare index over the past ten years

Image source: © 2022 Kalkine Media®

Also read: WES, GMG, WOW, TCL: How these ASX blue-chip stocks performed today?

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