Insights

Why is the CSL (ASX:CSL) share price struggling in December?

What’s happened to CSL lately?
The post Why is the CSL (ASX:CSL) share price struggling in December? appeared first on The Motley Fool Australia. –

The CSL Limited (ASX: CSL) share price has dived about 12% since the start of December. On Friday, the global biotech’s shares finished the session down 0.33% to $272.10 apiece.

What’s weighing down CSL shares?

A few factors have had a negative impact on the CSL share price, prompting investors to hit the sell button.

Firstly, the rapid spread of the COVID-19 omicron variant has spooked the market since its discovery on 24 November. The S&P/ASX 200 Index (ASX: XJO) sunk to a low of 7,168 points on 2 December, before slightly recovering. On Friday, the benchmark index finished trading at 7,304 points, up 0.1% for the day.

One of the main challenges CSL has faced during the pandemic is a reduction in its plasma collections due to lockdowns. Australia is currently facing a surge in COVID-19 cases, particularly in New South Wales and Victoria.

In addition, the company announced an institutional placement this week to raise $6.3 billion to purchase Vifor Pharma. To put this in perspective, this is Australia’s second largest equity raise, behind Telstra Corporation Ltd (ASX: TLS). It’s also the world’s seventh-largest equity raise for 2021.

The placement price of $273.00 per share would see about 23.1 million new CSL shares brought onto the company’s registry. CSL also revealed it would launch a $750 million share purchase plan, offering the same terms to retail investors.

When CSL shares came out of a trading halt on Thursday, investors dumped them and the share price fell by 8.16%. This was the company’s biggest one-day decline since the beginning of the pandemic in March 2020.

With more shares being added to the company’s books, this will inevitably dilute shareholder value. 

The CSL share price could be an attractive buy for the medium-term. Analysts at Morgans raised their price target by 3.2% to $334.70 on Thursday. Based on CSL’s last closing price, this represents an upside of 23%.

CSL share price summary

Over the course of the past 12 months, CSL shares have taken investors on a rollercoaster ride, down 5.5%. Over the year, the shares have traded between $242 and $319.78.

On valuation grounds, CSL is the second largest company on the ASX with a market capitalisation of roughly $124.44 billion.

The post Why is the CSL (ASX:CSL) share price struggling in December? appeared first on The Motley Fool Australia.

Should you invest $1,000 in CSL right now?

Before you consider CSL, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Brokers name 3 ASX shares to buy today

Why Chorus, CSL, Qantas, and Sims shares are dropping

ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss

CSL (ASX:CSL) share price down 8% after raising US$4.5bn

5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!