And here's someone else noticing how the BTK and NAS are moving in tandem:
Headline: UPDATE 1-U.S. investors hunt biotech bargains
===========================================================
NEW YORK, April 28 (Reuters) - U.S. biotechnology shares
regained some lost ground Friday as investors hunted for
bargains after the sector's nearly two-month long slump.
The Nasdaq biotech Index <.IXB>, made up of about a dozen
of the largest U.S. pharmaceutical companies and some European
ones, climbed nearly 8 percent, or 69.63 points, to 952.75 on
Friday. At Friday's closing level the index remained about 41
percent below its record high of 1,619.98 set March 7.
Analyst Carl Gordon of OrbiMed Advisors said he did not
believe fundamentals for the biotech group had changed.
Instead, he speculated investors were bargain hunting for
quality biotechs whose share prices have plummeted from their
highs seen before a downturn in the sector in early March.
Biotech shares have tumbled since mid-March when a
statement by U.S. President Bill Clinton was interpreted by
Wall Street as a challenge to biotech companies' property
rights over genes.
"Human Genome Sciences and Celera are two good examples of
quality companies whose stock prices have been hit hard. Both
companies, I feel, will be successful, although it's hard to
value them in the short term," Gordon said.
Gordon, a New York-based analyst, said the Nasdaq composite
index, heavily weighted with high-technology stocks, rose
moderately on Friday and that biotechs in recent months have
rocked up and down in tandem with the index.
"When the Nasdaq (composite) goes up, the Nasdaq biotech
index often goes up even more. Maybe that's because biotechs
are super risky and super high-tech and are therefore that much
more attractive to some momentum investors," he said.
The broader Nasdaq Composite Index climbed 2.30 percent,
while the S&P 500 eased 0.85 percent on Friday.
Human Genome Sciences Inc. (NASDAQ:HGSI) shares rose 13/15 to
76-9/16 on Friday, while shares of Celera Genomics (NYSE:CRA)
jumped 16-3/4 to 82-1/2, making it one of the New York Stock
Exchange's top percent gainers.
Other biotech gainers included Affymetrix Inc. (NASDAQ:AFFX),
which rose 12-9/16 to 135-1/16, and Millennium Pharmaceuticals
Inc. (NASDAQ:MLNM), which gained 16-1/8 to 79-3/8.
Desk, 212-859-1870, david.brinkerhoff@reuters.com))
Copyright 2000, Reuters News Service
Peter |
