Here’s why the CSL (ASX:CSL) share price is up 5% in a month

Here’s two happenings that might explain CSL’s recent gains.
The post Here’s why the CSL (ASX:CSL) share price is up 5% in a month appeared first on The Motley Fool Australia. –

The last 30 days have been good to the CSL Limited (ASX: CSL) share price.

Its gained 4.97% over the month to today, despite releasing no news to the market. In fact, the last time the ASX heard price-sensitive news from CSL was back in early May.

Right now, the CSL share price is $292.73.

Let’s take a look at what’s been driving it lately.

What’s up with the CSL share price?

It’s been a quiet, yet productive month on the ASX for CSL.

While it has been in and out of the news due to its contract to produce AstraZeneca‘s COVID-19 vaccine, the company itself hasn’t announced anything.

So, it’s a mystery as to why the CSL share price is gaining. Or is it? Here are two happenings that might explain why the healthcare giant’s stock is surging.

Australian dollar

CSL is an Australian company, but most of its profit comes from overseas.

In financial year 2020, only 1.5% of CSL’s external operating revenue came from Australia.

Most of its income came from the United States. And right now, $1 Australian is only getting US$0.73.

That means when CSL earns income in US dollars, it gets more Aussie bucks back in its pocket. Although, the company does report in US dollars, so we likely won’t see the impact of the currency fluctuation in its upcoming full year report.

mRNA possibility

It’s also less than a month since the federal government’s approach to the market, calling for companies to submit their interest in creating mRNA vaccines, closed to new applicants.

According to reporting by ABC News, Industry Minister Christian Porter confirmed CSL has put itself forward to be considered as an mRNA vaccine manufacturer.

The anticipation of finding out who has won the federal government’s favour might also be boosting the CSL share price.

Of course, CSL already makes the AstraZeneca vaccine in its Melbourne facility.

CSL share price snapshot

The month that’s been has added to CSL’s strong performance on the ASX.

The CSL share price is currently 2% higher than it was at the start of 2021. It has also gained 3% since this time last year.

The post Here’s why the CSL (ASX:CSL) share price is up 5% in a month appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

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