The CSL Limited (ASX:CSL) share price has gained $2.56 or 1.36 per cent to trade at $191.45 despite the ASX 200 slumping again in Monday trade.
Rising US interest rates is sending shivers through the stock market as higher interest rates slow economic growth and by comparison, can also make bonds and term deposits look more attractive than shares.
In Monday trade, the ASX 200 index has slumped 52 points or 0.9 per cent to 5,844.
Though there was no major news out on CSL shares, an article in the AFR quotes portfolio manager Emma Goodsell of Airlie Funds Management as saying the biotech giant is one of the best healthcare businesses in the world.
Ms Goodsell says CSL shares are always going to look expensive, but “there are not that many businesses around the globe where demand for their core product has grown at a 10 per cent rate for 30 years.”
This view is in contrast to the team at Yarra Australian Equities Fund who believe the current valuation of 37 times forward earnings more than reflects CSL’s strong product demand outlook. The fund is underweight CSL shares.