Understanding the Market | Concept stocks related to CRO collectively rise, with the Federal Reserve nearing interest rate cuts and multiple favorable policies emerging, the sector is expected to see marginal improvement

Zhitong
2024.07.17 03:19
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Concept stocks related to CRO collectively rose. As of the time of publication, Tigermed rose by 4.75% to HKD 28.65; GenScript Biotech Corporation rose by 4.66% to HKD 13.02; Pharmaron climbed by 3.76% to HKD 46.95; and Joinn Laboratories China increased by 2.56% to HKD 8.8. On the news front, with U.S. inflation falling more than expected in June and Powell frequently adopting a dovish stance, the market is now predicting a 100% probability of a rate cut by the Federal Reserve in September. Open Source Securities previously pointed out that as the Fed enters a rate-cutting cycle, improved liquidity will help optimize the investment and financing environment and boost the innovation drug research and development sentiment, potentially bringing greater valuation repair space to innovative drug targets that are still at the bottom. Furthermore, favorable policies continue to support the development of the innovative drug industry. Orient Securities stated that based on the latest data of key indicators of the CRO industry sentiment: global liquidity has basically stabilized, while domestic investment and financing are still relatively tight; enthusiasm for research and development remains high, with IND and new clinical trials still at high levels. The bank believes that the CXO sector, after experiencing a double blow in performance and valuation, is expected to see marginal improvement

According to the Wise Finance APP, the concept stocks of CRO collectively rose. As of the time of publication, Tigermed (03347) rose by 4.75% to HKD 28.65; GenScript Biotech Corporation (01548) rose by 4.66% to HKD 13.02; Pharmaron (06821) rose by 3.76% to HKD 46.95; and Joinn Laboratories China (03759) rose by 2.56% to HKD 8.8.

On the news front, with the unexpected decline in U.S. inflation in June coupled with frequent dovish remarks from Powell, the market is now predicting a 100% probability of a rate cut by the Federal Reserve in September. Open Source Securities previously pointed out that as the Fed enters a rate-cutting cycle, improved liquidity will help optimize the investment and financing environment and boost the innovation drug research sector, potentially bringing greater valuation recovery space to innovative drug targets still at the bottom. In addition, favorable policies continue to support the development of the innovative drug industry.

Oriental Securities stated that based on the latest data on key indicators of the CRO industry's business climate: global liquidity has basically stabilized, while domestic investment and financing are still relatively tight; enthusiasm for research and development remains high, with IND and new clinical trials still at high levels. The firm believes that the CXO sector, after experiencing a double blow of performance and valuation, is expected to see marginal improvement

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