An index of 40 small cap ASX biotech stocks soared by 6.5 percent to over 15,000 points for the first time, significantly outperforming the ASX200.
The BDI-40 is an ASX index developed by Biotech Daily, an Australian website covering the health and biotech sectors. It includes 40 top-performing biotech stocks and does not include Cochlear, CSL or Resmed, all companies with market capitalisations of over $10 billion.
In May, it rose over 15,000 points for the first time, up 6.5 per cent, with its constituent stocks reaching a collective market cap of over $11 billion.
That followed an astonishing ride in April, when it rose 18.1 per cent and breached the $10 billion collective market cap barrier for the first time.
The index is now outperforming the ASX200 by about 10,000 points, and has been a stronger investment than the ASX200 for all of this decade.
“The Biotech Daily Top 40 Index (BDI-40) is selected on the basis of interesting technologies, benefit to human health and investment potential. Market capitalisation is important, but is not a sole arbiter,” writes editor David Langsam.
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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