It’s shaping up to be a rather pleasant end to the week for ASX shares and the S&P/ASX 200 Index (ASX: XJO). So far this Friday, the ASX 200 has put on a healthy 0.82% and is back over 7,150 points. But the same can’t be said for the CSL Limited (ASX: CSL) share price.
CSL shares, at the time of writing, are in the red today. They’ve lost 0.47% of their value so far and are currently going for $268.75 each. So what’s going on here? After all, this is an underperformance of the broader market of more than 1%.
Why is the CSL share price dropping today?
Well, it’s not entirely clear. There hasn’t been any news or announcements out of CSL today. Or indeed for a few weeks now.
But what we do know is that the S&P/ASX 200 Health Care Index (ASX: XHJ) is one of the worst-performing sectors on the ASX 200 today so far. Amongst ASX healthcare shares, Virtus Health Ltd (ASX: VRT) is leading the losses.
Virtus shares are presently down by a notable 1.1%. This could be related to the news we heard this morning, that Virtus has terminated the transaction implementation deed with European company CapVest in favour of a rival offer from BGH Capital.
The Virtus board is now unanimously recommending shareholders go with the BGH offer, even though the termination with CapVest will see Virtus pay a $7.19 million break fee.
This could be what is dragging the Virtus share price down today, and by extension, Virtus’ woes could be why the entire healthcare sector, including the CSL share price, is under the pump.
At the current CSL share price, this ASX 200 healthcare giant has a market capitalisation of $129.42 billion, with a dividend yield of 0.96%.
The post Why is the CSL share price losing ground on Friday? appeared first on The Motley Fool Australia.
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More reading
- Why I think these 3 ASX shares are top-quality buying at today’s prices
- After being stuck in the mud for 3 years, are CSL shares a buy today?
- The best 2 ASX shares money can buy right now: expert
- ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
- Why has the CSL share price lagged the ASX 200 over the past week?
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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