Resource sector overshadows Biotechs
Date: 28.7.2006
The latest Intersuisse Biotechnology Index has found that Australian biotechnology stocks rose 10.1 per cent in 2005/06, failing to match the All Ordinaries Index, which rose 19 per cent.
Intersuisse corporate analyst Jonathan Buckley said the underperformance of the sector was largely caused by the "overwhelming interest" in resource stocks.
"Stunning gains by some resources companies cast a long shadow over the speculative potential offered by biotech stocks," Mr Buckley said.
But he said the biotech sector had benefited from the "large risk appetite characteristic" of Australian investors.
"This was aided by the consistent news flow from biotech companies announcing milestones achieved and some good licence deals with major pharmaceutical companies throughout the year," Mr Buckley said.
"Source":[ http://www.theage.com.au/news/business/resource-sector-overshadows-biotechs/2006/07/11/1152383729939.html]
