Healthcare shares led the ASX 200 last week. Is a sector comeback underway?

Group of doctors celebrate by pumping fists in the air

ASX 200 healthcare shares led the 11 market sectors last week with a 4.84% increase over the five trading days.

The S&P/ASX 200 Index (ASX: XJO) lifted 0.28% amid a US-Iran interim peace deal and oil prices dropping to pre-war levels.

The ASX 200 finished the week at 8,828.7 points.

It’s potentially significant that healthcare was out in front last week given the sector’s poor performance over the past 12 months.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is down 39% over 12 months and down 25% in the calendar year to date.

The healthcare index hit a 9-year low of 21,947.2 points on 3 June.

Samy Sriram, a market analyst at online investment platform, Stake, says healthcare companies have had many headwinds.

They include currency challenges for those reporting in US dollars; three interest rate rises in Australia; cost of living pressures; higher shipping costs; new caps on insurance payouts in some nations; higher labour costs; and regulatory uncertainty in the US.

However, markets are cyclical. At some point in a downturn, share prices fall to levels that offer too much value to ignore, and investors dive back in.

Does 3 June represent that pivot point?

ASX 200 healthcare shares have increased 13% since 3 June compared to just a 0.49% bump for the broader benchmark index.

Let’s review some individual company performances last week.

Healthcare shares led the ASX sectors last week

The CSL Ltd (ASX: CSL) share price ascended 8.19% to close at $116.32 on Friday.

Sigma Healthcare Ltd (ASX: SIG) shares rose 4.55% to $2.76 apiece.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares dropped 2.17% to $31.53.

Pro Medicus Ltd (ASX: PME) shares lifted 5.37% to $172.80.

Resmed CDI (ASX: RMD) shares fell 3.75% to $26.68.

Sonic Healthcare Ltd (ASX: SHL) shares eased 0.74% to $20.05.

The Ramsay Health Care Ltd (ASX: RHC) share price lifted 1.73% to $39.49.

The Cochlear Ltd (ASX: COH) share price shot 13.87% higher to $118.14.

Telix Pharmaceuticals Ltd (ASX: TLX) shares increased 6.62% to $14.50.

The Ansell Ltd (ASX: ANN) share price rose 2.46% to $29.99.

The EBOS Group Ltd ASX: EBO) share price fell 3.87% to $16.91.

Mesoblast Ltd (ASX: MSB) shares ripped 9.23% to $2.13 apiece.

Megastar ASX 200 healthcare share, 4DMedical Ltd (ASX: 4DX), rocketed 23.37% to $4.54.

4DMedical shares are up 1,716% over 12 months.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector Change last week
Healthcare (ASX: XHJ) 4.84%
Financials (ASX: XFJ) 1.69%
Information Technology (ASX: XIJ) 0.99%
Consumer Discretionary (ASX: XDJ) 0.51%
Consumer Staples (ASX: XSJ) 0.15%
A-REIT (ASX: XPJ) 0.02%
Industrials (ASX: XNJ) (0.13%)
Materials (ASX: XMJ) (0.46%)
Communication (ASX: XTJ) (1.67%)
Utilities (ASX: XUJ) (3.66%)
Energy (ASX: XEJ) (7.33%)

The post Healthcare shares led the ASX 200 last week. Is a sector comeback underway? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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, Cochlear, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Ansell, CSL, Cochlear, Pro Medicus, Sonic Healthcare, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.