Piazza Affari, investors' attention is returning to this sector

In recent times, one sector that has captured the interest of stock market insiders is the healthcare sector.
After the strong surge that began in 2020 with the advent of Covid-19, the healthcare securities segment first recorded extreme appreciation, only to then, with the economic complications of 2022, continue in an inexorable collapse that dragged down the price of many assets below levels at the start of the pandemic.
The question that arises spontaneously is: will the time of healthcare stocks return to Piazza Affari? This article is in collaboration with Freedom24.
Broker belonging to Freedom Holding Corp (FRHC), the only European company specialized in the brokerage sector listed on Nasdaq, with a capitalization of 4.38 billion dollars, offers its clients the opportunity to invest in a vast amount of assets , including the best stocks included in the Ftse mib.
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Healthcare on the stock market: what happened in the last year? The index used by Italian investors interested in monitoring the performance of the domestic healthcare market is the FTSE Italia All Share Health Care, which, during 2023, is recording a negative performance close to 6%.
Following the European price list, whose performance is well described by the EURO STOXX Health Care index, this currently suffers from a slightly more attenuated loss, of around 5%.
Looking overseas, however, the S&P500 Health Care is at a loss of -6.30%.
It has therefore not been an excellent year for the stocks belonging to this stock market segment.
This negative trend was surprising, especially in light of the numerous forecasts that anticipated possible and devastating economic recessions.
Traditionally, during these phases, the healthcare sector has demonstrated a certain robustness, often maintaining a more conservative trend.
However, during 2023, investors preferred to activate the risk-on mode, moving capital towards the most capitalized securities present on the main stock exchange lists.
This led to an overall increase in benchmarking valuations, but led, at the same time, to a drastic outflow of capital from some particularly sectoral assets, including healthcare.
Importantly, despite declining returns in the healthcare sector, there are signs of resilience and adaptation.
Piazza Affari: a look at Diasorin and Amplifon Looking inside the home, it is impossible not to take the shares of Diasorin (DIA) and Amplifon (AMP) as a reference.
These two companies were the focus of investors' attention throughout the stock market expansion following the pandemic outbreak and were literally sold off in the process of raising interest rates.
Diasorin even reached the lows of 2019, contracting from the highs by almost 60%, while Amplifon (AMP) by over 40%.
This is therefore a fairly significant and particularly attractive correction; this is because for many, the healthcare sector is considered a sort of "evergreen" of the markets.
The achievement of the oversold level, verifiable by applying a simple 14-period RSI on a weekly timeframe, and the recent changes regarding future economic expectations linked to Western countries could trigger a new wave of interest in this sector.
Invest in Ftse mib securities with Freedom24.
Commission-free for 30 days* Trade over 40,000 US, European and Asian stocks and ETFs from 15 global stock exchanges with Freedom24.
Enjoy 30 days of commission-free trading and get up to 4.2% in EUR and 6.1% in USD interest on your long-term deposited cash.