The ResApp Health Ltd (ASX: RAP) share price is sinking today. This comes after the company announced that Medgate had started European trails for ResAppDx, its smartphone-based acute respiratory diagnostic test.

At the time of writing, the digital health company’s shares are down 6.78%, trading at 5.5 cents.

First, a quick take on Medgate

Founded in 1999, Medgate provides telehealth services, bringing physicians to patients where needed via digital health bookings.

The company operates Europe’s largest telemedical centre in Switzerland and employs more than 500 people worldwide. Medgate has a presence in Germany, the Philippines, the United Arab Emirates, and India.

Why is the ResApp share price moving?

In today’s release, ResApp advised that Medgate has begun a 3-month pilot trial of ResAppDx through its telemedicine services in Switzerland. This follows a joint development and pilot agreement the companies signed in November last year.

During the initial phase of the partnership, both companies conducted detailed technical reviews on the ResAppDx technology. This included creating roadmaps for patients with respiratory disease symptoms, usability testing, automated processes, and training material development.

The companies will jointly evaluate the ResAppDx platform rollout across Medigate’s telehealth service. Several key metrics will be applied as a benchmark to test its success.

They will finalise negotiations on the cost model of the integration once ResAppDx passes the pilot trial.

Management commentary

ResApp CEO and managing director, Dr Tony Keating, commented:

…We are very confident that ResAppDx will provide considerable benefits for Medgate patients, physicians and insurers.

Medgate has made a strong commitment to ResApp and both parties remain confident of a successful pilot trial. The company has already significantly benefitted from Medgate’s knowledge and insights into telehealth best practice, and we look forward to continuing this work into the future.

Medgate CEO, Dr Andy Fisher, added:

We are absolutely convinced that the use of new technologies like ResAppDx will enable an advancement of our Digital Health platform. This will benefit our patients by enabling them to be treated conclusively by phone or video in even more cases.

ResApp share price review

The ResApp share price has been a weak performer over the past 12 months, declining more than 65%. The company’s shares hit a multi-year low of 5.2 cents last month and are within striking distance today, at 5.5 cents.

More reading

• Why the ResApp (ASX:RAP) share price opened 10% higher today
• Here’s why the Resapp (ASX:RAP) share price closed 5% lower
• Why the ResApp (ASX:RAP) share price is climbing higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Bruce Jackson.

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It was only back in September last year that we reported that a new brokering app called Superhero was about to take the ASX by storm.

By offering a market-leading $5 brokerage on all trades, Superhero was an exciting development for many ASX investors. Indeed, this was made especially so by the co-involvement of Afterpay Ltd (ASX: APT) co-founder Nick Molnar. In addition to Zip Co Ltd‘s (ASX: Z1P) Larry Diamond.

Compared to the ‘old-guard’ of ASX brokers like Commonwealth Bank of Australia‘s (ASX: CBA) CommSec, Superhero was certainly something different. So much so that some commentators dubbed it ‘the Australian Robinhood’. Robinhood is the uber-popular US brokering app beloved by millennials in particular.

But today, we get to report on another entry to the ASX brokering market.

Enter Sharesies

According to reporting in The Sydney Morning Herald (SMH) this morning, the New Zealand-based share trading platform Sharesies is “set to come on board” for ASX trading this month. Sharesies has been available for Kiwi investors since 2017. It offers trading in the New York Stock Exchange. Additionally, it also offers trading in the Nasdaq and the New Zealand Stock Exchange (yes, that’s a thing). It reportedly has 320,000 existing customers and $1 billion in funds under management. Co-founder Brooke Roberts states it “will be the first platform on the ASX to offer trades from as low as 1 cent”.

It will also differ from existing low-cost brokers like Superhero and the US shares-only Stake. Due to its “focus on financial literacy and education”.

Here’s some of what Ms. Roberts told the SMH about Sharesies:

What we’ve built Sharesies for is to enable people to build a portfolio with amounts they can afford and that’s what we always go back to… It’s not a get-rich-quick scheme, it’s not timing the market, it’s about time in the market… We just use everyday language, and we’ve really worked on creating a platform that feels accessible for everyone and means that people do become investors and feel like they can start growing their wealth.

How will this broker make money?

The SMH report doesn’t go into how Sharesies actually makes money. One wouldn’t think it would make a killing from 1 cent brokerage. But according to Sharesies’ New Zealand website, the platform is run using a subscription system as well. In New Zealand (the prices might differ for Australians), there are 2 ways you pay. For those with a portfolio value of between NZ$50 and NZ$3,000, there is a NZ$1.50 a month subscription fee. It’s NZ$3 a month for portfolios over NZ$3,000 and free for portfolios with NZ$0-50.

In addition, Sharesies also hits each transaction with a fee (pretty much brokerage). This is charged at 0.5% for orders up to NZ$3,000, and at 0.1% for orders over NZ$3,000. For New Zealanders who trade on the US market, a currency exchange fee of 0.4% is also charged on cash moving between the two currencies.

We don’t yet know the pricing for ASX shares since the product hasn’t launched yet. But one would expect it won’t be radically different from this model. Watch this space!

More reading

• What do big brokers think about the Afterpay (ASX:APT) share price this week?
• Why are ASX tech shares like Afterpay (ASX:APT) so volatile?
• The Flexiroam (ASX: FRX) share price rockets 35% after new announcement
• Here’s why brokers like these 2 small cap ASX tech shares
• 5 things to watch on the ASX 200 on Wednesday

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The majority of stock advice articles we read are about which shares we should or shouldn’t buy.

But selling is just as critical, since that’s when losses or gains are actually realised.

“Selling is as important to investing as braking is to driving,” Lumenary managing director Lawrence Lam posted on Livewire.

“Yet all too often, investors only know the accelerator and gloss over the analytical framework of selling. In doing so, they give up much of the hard work they have put in to establish the buy thesis.”

Lam added that selling is a difficult art that even professional investors are clumsy at.

He cited a recent University of Chicago study that showed poor selling was killing performance among institutional investors.

“So bad were the selling decisions they even failed to beat a random selling strategy,” said Lam.

“These weren’t retail investors. The study looked at portfolio managers with an average US$600 million size. The outcome? They still failed to outperform a simple randomised strategy.”

Why is everyone so bad at selling?

The reason is that humans use what are called “heuristics” to make decisions.

These are mental shortcuts that allow us to function in a world that demands complex choices be made each and every day.

The result is that we can make decisions faster and with less stress, but the solution is not necessarily optimal.

Usually, this serves us well — like when deciding which breakfast cereal to have in the morning.

But for an activity that requires complicated analysis like deciding which shares to sell and when, heuristics can cause poor outcomes.

Lam quotes three common heuristics that cause investors to dispose of their shares poorly:

1. Disposition effect: “a reluctance towards selling losers, and inclination to selling winners”
2. Overconfidence: “assuming you will make the right decision to sell without any factual analysis”
3. Narrow bracketing: “looking at decisions in isolation without consideration for the broader picture”

Lam said these cognitive biases can cause one of two outcomes.

“First, you can sell out of a great company too early,” he said.

“Second, a weakness in your selling process can lead to prolonging a losing investment far too long. Our cognitive biases can shroud our judgement. We can become committed to a previous decision and fail to see how changing circumstances no longer make an investment worthy of our portfolios.”

Easier said than done

Times of market crashes are especially hard on our ability to think clearly about selling shares.

Instead of judging a business on its merits, investors become price-reactionary, according to Lam.

“When you’re facing a 30 to 40% drop in prices, the stomach will take over the mind. Stress sets in, sometimes even panic,” he said.

“Heuristics invade the decision-making process when time is pressured. Evidence points to the most severe underperformance on sales coming after extreme price movements.”

Professionals are actually more susceptible to rash sell-offs during market corrections, as they have to regularly report back performance to their clients.

“They tend to use stop-losses, automatic rebalancing to benchmark weighting, and auto profit-taking triggers to simplify sell decisions.”

Lam said selling a share must always be on the basis of changes in a company’s prospects.

More reading

• The Thomson Resources (ASX:TMZ) share price crashes 10%
• Why is the BlackEarth Minerals (ASX:BEM) share price soaring 33%?
• 2 stellar ASX tech shares to buy in March
• What’s up with the oil price right now?
• 2 impressive ASX shares to buy in March 2021

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. 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 Bruce Jackson.

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After starting the day with a healthy 6.4% boost in early trade, the Thomson Resources Ltd (ASX: TMZ) share price has taken a turn for the worse this afternoon.

Shares in the mineral extraction company have plummeted from an intraday high of 16.5 cents apiece to 14.0 cents at the time of writing, down almost 10%.

The miner has made 2 announcements, yesterday and today, after coming out of a trading halt.

Let’s take a closer look at what’s driving the Thomson Resources share price today.

Project update

In yesterday’s announcement, Thomson Resources updated the market on the status of its projects in New South Wales.

The minerals extraction company declared its maiden drilling program at the Mallee Hen gold prospect in the Lachlan Fold Belt, NSW, was complete.

The mining company drilled 7 holes at the site, including one abandoned when the company struck a large cavern. The company claimed to have passed “several intervals of strong quartz veining” during the drilling process.

Thomson will now move the drill rig from Mallee Hen to its Bygoo tin project with the hope of discovering more tin depositories at the site. The company will move the rig to its Bald Hill tin prospect from there.

Silver mining

Today’s ASX announcement concerns a silver mining site in Texas, Queensland.

Thomson advised it has entered into a binding agreement with liquidators overseeing the dissolution of MRV Metals Ltd to buy a site 8km east of Texas near the NSW border.

The already existing mine site is located in the Silver Spur Basin of southern Queensland in the New England Fold Belt.

Commenting on the acquisition, Thomson Resources chair David Williams said:

I am very pleased we have been successful in our tender for the Texas Silver Project in Southern Queensland. This provides a key piece for our implementation of the Fold Belt Hub and Spoke Strategy.

Not only will it provide Thomson with an ideal location for a central processing facility that we envisage, but it will also bring the additional resources which will take us close to our goal of having at least 100 million ounces of silver equivalent resources available at the facility if required.

The Texas project also brings considerable exploration potential for silver, and also gold, zinc, lead and copper.

Thomson Resources share price snapshot

Thomson Resources share price has been on the up over the past year. If an investor bought shares in the company a year ago, they would be sitting on a mouth-watering 625% return on investment.

The company has a market capitalisation of $51.3 million.

More reading

• The Thomson (ASX:TMZ) share price jumped 9% higher today after its latest announcement

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. 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 Bruce Jackson.

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The BlackEarth Minerals NL (ASX: BEM) share price has recovered after a morning of poor trading after the company announced it has joined the European Battery Alliance (EBA).

It’s been a volatile day for the graphite developer’s share price. After opening at 11 cents this morning, it soon dropped by 8%. It has since gained that back and is currently more than 33% higher than yesterday’s close.

At the time of writing, shares in BlackEarth Minerals are trading at 16 cents each.

What did BlackEarth announce today?  

In this afternoon’s announcement, BlackEarth revealed it and its supply partner LuxCarbon GmbH had joined the EBA, pledging to provide industry support to the Alliance and its members.

BlackEarth will also provide the EBA with samples of high-grade concentrate from its recently commenced Stage 2 pilot program to confirm its suitability for the electric vehicle market.  

The company says its association with the EBA will benefit it in further developing its graphite supply chain business strategy, supporting its downstream processing plant and fast tracking the development of its graphite deposit in Madagascar.

About the EBA

The EBA is an industry group that aims to develop the growing electric vehicle and battery markets in Europe. It’s working to create a competitive, sustainable and inexpensive battery-making industry on the continent.

The goals of the EBA are to access sustainable raw materials for the production of batteries at a reasonable cost and to support both European battery making and new markets for batteries.

Other members of the EBA include Tesla, Ford, BMW, Bosch and Volvo Cars.

Commentary from management

BlackEarth managing director Tom Revy said that the company was encouraged by the EBA to join.

He commented:

Membership of the Alliance is a natural fit for our ambitions and the plans we have with our existing German based supply partner, LuxCarbon.

The team at BlackEarth are working toward the establishment of a downstream processing plant and we see the European market as a key destination for our range of products. Many of the existing Alliance members are already engaged with our partner in Europe and this provides us with enormous opportunities that are unique to BlackEarth.

BlackEarth Minerals share price snapshot

 The BlackEarth Minerals share price has risen by 200% year to date, and by more than 321% over the last 12 months.

More reading

• Why the BlackEarth (ASX:BEM) share price is racing 6% higher
• The Blackearth Minerals (ASX:BEM) share price is rocketing 150% today. Here’s why

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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 Bruce Jackson.

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Due to recent weakness in the technology sector, now could be an opportune time to consider long term investments in the space. Two stellar ASX tech shares that could be great long term options are listed below. Here’s why they are highly rated:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. PCBs are the circuit boards you find in almost all electronic devices. 

Positively for Altium, with the number of electronic devices exploding globally because of technological advances, demand for its software has been growing very strongly and looks set to continue doing so for some time to come.

Management certainly believes this will be the case. It is aiming to achieve subscriptions of 100,000 and grow its revenue to US$500 million by FY 2025/26. This compares to FY 2020’s ~51,000 subscriptions and revenue of US$189.1 million.

Credit Suisse is positive on the company. It recently retained its outperform rating and $35 price target on Altium’s shares.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX tech share to look at is Pushpay. It is a donor management and community engagement provider with a focus on the church market.

While Pushpay was growing at a rapid rate before COVID-19, the pandemic has given its growth a lift over the last 12 months. This is because COVID has accelerated the digitisation of the church and led to a surge in demand for its offering.

Whether or not this has pulled forward sales from future periods is difficult to say, so the company’s growth could potentially slow in FY 2022. But it certainly appears to be worth sticking with the company due to its long term growth potential.

Like Altium, Pushpay has set itself bold aspirational targets. It is aiming to win a 50% share of the medium to large church market in the United States. Management estimates this to be worth US$1 billion in revenue. This is almost six times greater than the annualised revenue of US$85.6 million it delivered in the first half of FY 2021. 

Goldman Sachs is positive on the company’s growth trajectory. So much so, the broker has a conviction buy rating and a $2.59 price target on its shares.

More reading

• 2 impressive ASX shares to buy in March 2021
• How did WAAAX shares perform this reporting season?
• 2 ASX shares to buy in March 2021
• 2 of the best ASX tech shares to buy and hold
• 2 outstanding ASX growth shares to buy in March

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The brent crude oil price is up 2.29% for the day (at the time of writing) and 23.27% for the year.

Investors are watching oil this week as OPEC+ gets together to discuss production levels.

Price of oil on watch after OPEC+ talks

According to MarketWatch, traders are looking to OPEC+ to ease trading restrictions come April 2021.

The group of major oil producers met to hold talks this week, and some analysts are expecting production to be ramped up.

Reuters claims that OPEC+ is expecting global oil demand to grow to 96 million barrels per day. Reuters further notes that market expectation is for an estimated ease in production cuts equating to 500,000 barrels per day.

ASX companies react to oil price

Oil Search Ltd (ASX: OSH) shares are slightly lower in afternoon trading, down 0.71% at $4.20. 

The slide in the Oil Search share price comes despite the company’s announcement today that Peter Fredricson has been appointed chief financial officer (CFO) effective 23 March 2021.

Meanwhile, the Santos Ltd (ASX: STO) share price has edged up to $7.40 at the time of writing, a 0.14% push.

In a recent update, the company announced that S&P confirmed its BBB- (stable) credit rating. S&P commented that the stable outlook “reflects S&P’s view of Santos’ capacity to fund growth…”

The Beach Energy Ltd (ASX: BPT) share price is up 1.23% at the time of writing to $1.65.

Earlier this week, Beach Energy advised it was purchasing Senex Energy Ltd (ASX: SXY)’s Cooper Basin business for $87.5 million. 

Foolish takeaway

Oil prices being on the move isn’t a new phenomenon, with the per barrel price of crude oil crashing 35% between 2019 and 2020.

Investors will be no doubt keeping up with the OPEC+ chats to form an opinion on where oil prices are going. The next couple of days should continue to provide a clearer picture.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Exploring the golden window of opportunity for ASX ESG investors
• 5 things to watch on the ASX 200 on Wednesday
• Oil back to $100 per barrel? ASX energy shares could rocket
• Why Limeade, Oil Search, Platinum, & Whispir shares are sinking

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. 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 Bruce Jackson.

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Quite a few of the impressive shares on the ASX are trading lower today thanks to some market volatility.

Lower prices can mean better value for prospective investors, assuming the companies haven’t released any negative news like what has happened to Synlait Milk Ltd (ASX: SM1) today.

These businesses are ones that have large growth plans in place:

Altium Limited (ASX: ALU)

Altium management have a plan to becme the world’s leading electronic PCB software business.

The Altium share price has fallen by more than 1% today and it’s now trading at around $26, which is a fall of around 35% since the 52-week price high in mid-October 2020.

Whilst the company is struggling in the face of COVID-19 impacts to its customers and the overall industry, the company is seeing green shoots of a recovery.

In the FY21 half-year result it said that Octopart revenue went up by 19% to US$10.8 million as electronic manufacturing rebounded during the half. Altium says that this is a positive leading indicator for PCB design growth that should drive Altium Designer sales in the second half of the financial year.

A lot of the planned growth is pinned on Altium 365, its online collaboration platform for its software. This is where management see a major opportunity.

Altium CEO Aram Mirkazemi said:

Altium 365 is key to our future success through indirect monetization from our CAD software tools and, in time, direct monetization from the broader ecosystem. I am most heartened by the strong adoption of Altium 365 and, with our Netflix organisational changes behind us, I am confident of a much stronger second half. Early signs are positive for this.

However, the ASX share’s management said that with the lingering uncertainty, FY21 full year revenue guidance (excluding the TASKING business due to the sale) is expected to be at the lower end of the range, from US$190 million to US$195 million and an earnings before interest, tax, depreciation and amortisation (EBITDA) margin in the range of 37% to 39%.

According to Commsec, the Altium share price is valued at 42x FY23’s estimated earnings.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price is currently down 4.4% as part of the market decline.

Its customer base is plus-size women, it sells items including apparel, footwear and accessories. Those products are sold across a number of different brands including City Chic, Avenue, Evans, CCX, Hips & Curves and Fox & Royal.

Avenue (US-based) and Evans (UK-based) target a broad customer base across conservative and fashion, both of which have a large online customer base. Hips & Curves and Fox & Royal are online intimate brands in the US and ANZ respectively.

City Chic has a goal of a ‘leading a world of curves’ and the CEO, Phil Ryan spoke of the progress that the company has been making towards its global goal:

Over the last two years, we have more than doubled our global active customer base to 801,000, increased online penetration from 40% to 73% and grown our northern hemisphere business from 16% to 45% of total sales. We now have three banner brands which have very strong brand recognition, customer loyalty and traffic in their respective home countries and we will leverage these platforms to sell all our brands around the globe.

The ASX share reported sales growth of 13.5% to $119 million, underlying EBITDA growth of 21.8% to $23.3 million and statutory profit growth of 24.8% to $13.1 million. Normalised operating cash flow was $21.5 million.

City Chic said that in the first eight weeks of the second half of FY21, strong comparable growth of sales has continued.

The City Chic share price is valued at 23x FY23’s estimated earnings, according to Commsec.

More reading

• How did WAAAX shares perform this reporting season?
• 2 of the best ASX tech shares to buy and hold
• Got money to invest? Here are 2 ASX shares to buy
• 2 outstanding ASX growth shares to buy in March
• City Chic (ASX:CCX) share price to grab attention after HY21 profit growth

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Navarre Minerals Ltd (ASX: NML) share price is gaining today. At the time of writing, the Navarre share price is up more than 10% to 16 cents.

This comes after the ASX gold and silver explorer reported on its air core drill results this morning.

What drill results did Navarre report?

The Navarre share price is well and truly on the rise today. Indeed, this rise comes after the company reported “outstanding gold and silver results”. These results were detected at its Glenlyle project in western Victoria.

The assay results come from Navarre’s 8,400 metre air-core drilling program. The top results included grades of up to 301 grams per tonne of silver. Additionally, it reported 1.3 grams per tonne of gold.

Navarre said the strong results indicate it is “honing in on a large concealed polymetallic mineralised system”. The company has already started a 2,000-metre diamond core drilling program to further understand the mineralised system.

Comments from the managing director

On the results, Navarre’s managing director, Ian Holland said:

The latest air-core drilling results are outstanding and we have immediately kickstarted a diamond core drilling campaign to test the depth extents of a potentially large polymetallic mineral system on the Glenlyle tenement.

The mineralised footprint at Morning Bill has now doubled in strike length, with further extensions likely given visual analysis of material drilled but not yet assayed.

Holland added that Navarre was optimistic about the “broad widths and tenor of the results… as well as the presence of a large magnetic low corresponding with this mineralisation”.

The company stated it will now focus on verifying and reporting the remaining results from the air core drilling program. In addition, it is also focusing on completing the 2,000-metre diamond core drilling program it just commenced.

Share price snapshot

Navarre Minerals shares have gained 61% over the past 12 months. In comparison, the All Ordinaries Index (ASX: XAO) is up 10% since this time last year.

So far in 2021, the Navarre share price is down 31%.

More reading

• Why are these ASX 200 healthcare shares sinking today?
• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade
• Myer (ASX:MYR) share price plummets on first-half results release
• The ARB (ASX:ARB) share price moving up on $40 million acquisition
• Element 25 (ASX:E25) share price takes a hit despite maiden production news

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 Bruce Jackson.

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As the world raced for vaccines and medicines in 2020 to prevent and treat the COVID-19 pandemic, S&P/ASX 200 Index (ASX: XJO) healthcare shares had some periods of strong outperformance.

But in recent weeks that outperformance, for most, has evaporated.

ResMed and CSL share prices sliding

The ResMed Inc (ASX: RMD) share price has fallen 1.6% in intraday trading and is down by around 11% year to date. ResMed is best known for its respiratory medical devices.

Meanwhile, the CSL Limited (ASX: CSL) share price is down a significant 4.63% at the time of writing. This ASX 200 healthcare heavyweight has a historic focus on influenza vaccine development. And in 2021, CSL shares have fallen by around 10%.

By comparison, the ASX 200 is down 0.5% in intraday trading and up 1% year to date.

So what’s going on?

Why are ASX 200 healthcare shares under pressure?

It’s not just ASX 200 healthcare shares that have come under pressure in recent weeks.

The phenomenon is happening in share markets around the world. And it’s closely linked with the rollout of the coronavirus vaccine.

As Bloomberg reports:

Equity investors are steering clear of drug makers and health-care service providers as continued progress in distributing COVID-19 vaccines adds to the momentum in stocks poised to benefit most from an economic reopening.

According to the article, five out of six of the largest healthcare shares listed on the S&P 500 Index (SP: .INX) had lost ground in afternoon trading yesterday (overnight Aussie time).

ABIOMED Inc. (NASDAQ: ABMD) closed the day down 5.4% and has slipped another 1% in after hours trading.

DexCom Inc. (NASDAQ: DXCM), with a market capitalisation of US$35.5 billion, lost 5.9% by the closing bell.

Commenting on the healthcare sector’s performance, Goldman Sachs strategist Asad Haider said, “Investor conversations point to a generalist buyer’s strike across the sector that likely needs some catalyst to reverse course.”

I’m not sure what type of catalyst Haider is referring to. But let’s hope it’s not the unexpected need for even more respiratory devices and vaccines.

In the meantime, the declining share prices of both CSL and ResMed haven’t prevented several leading brokers from giving these ASX 200 blue chip shares buy and outperform ratings.

More reading

• 2 fantastic blue chip ASX 200 shares to buy
• 5 things to watch on the ASX 200 on Thursday
• Is it time to buy these 2 hot ASX healthcare shares?
• What you need to know about the CSL (ASX:CSL) dividend
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Abiomed and DexCom. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended DexCom and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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