Citibank urges for cau­tion on biotech stocks

The China Post - - BUSINESS -

Medicine is cur­rently one of the most promis­ing sec­tors in terms of growth, but in­vestors are ad­vised to be cau­tious when look­ing to in­crease hold­ings of biotech stocks this year, said Cit­igold Wealth Man­age­ment ( ).

Over the last 12 months, 109 of the 150 firms listed on the Nas­daq Biotech In­dex lost money, said Citi­corp Vice Pres­i­dent Spencer Wang ( ) at press event ear­lier this month.

Among the 41 prof­itable com­pa­nies, only five had in­come over US$1 bil­lion, Wang said, adding that th­ese five ac­counted for 83 per­cent of to­tal earn­ings gen­er­ated in the Nas­daq Biotech In­dex.

Wang said in­vestors should be wary as biotech con­tin­ues its pop­u­lar­ity streak and fo­cus on the dollar-de­nom­i­nated big-cap per­form­ers.

Tokyo stocks are also a wise in­vest­ment, as many listed firms have sta­bi­lized af­ter rocky trad­ing in 2012 and may of­fer safe fi­nan­cial re­sults, he said.

Citi is a lead­ing global fi­nan­cial ser­vices com­pany with 200 mil­lion cus­tomer ac­counts in over 160 coun­tries and ju­ris­dic­tions.

It of­fers fi­nan­cial prod­ucts and ser­vices, in­clud­ing con­sumer bank­ing and credit, cor­po­rate and in­vest­ment bank­ing, se­cu­ri­ties bro­ker­age, trans­ac­tion ser­vices and wealth man­age­ment.

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