Saxo Markets has released data on the best-performing stocks on the London Stock Exchange for the week ending 4 July. According to this data, the biggest winner on the LSE last week was HutchMed China Ltd, a Hong Kong-based biopharmaceutical company. Let’s take a look at why HutchMed shares were on a roll last week and whether investors should consider investing in the company.
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What’s happening with HutchMed shares?
According to Saxo Markets, the shares of HutchMed China Ltd, previously known in the UK as Chi-Med, were up 28.96% last week, making it the best-performing stock on the LSE.
The gain is similar to the previous week’s top performer, Morrisons, whose shares were also up by 28%.
Why did the price of HutchMed shares rise?
HutchMed’s strong performance on the LSE last week follows a hugely successful initial public offering (IPO) in Hong Kong, which appears to have boosted investor confidence here in the UK.
The Hong Kong IPO is the third listing of the company, following its first on London’s AIM market in 2006 and then on the NASDAQ in the US in 2016.
The listing raised a total of HK$4.17 billion (£0.39 billion). According to the company, the proceeds will be used to advance its extensive late-stage clinical programmes for the treatment of cancer and autoimmune diseases.
The funds will also be used to further strengthen “commercialisation, clinical, regulatory and manufacturing capabilities, fund potential global business development and strategic acquisition opportunities and for general corporate purposes”, the company said.
What other companies performed well on the LSE last week?
According to Saxo Markets, other companies that also posted significant gains on the LSE last week include:
- ITM Power Plc: 14.46%
- Dixons Carphone Warehouse: up 10.30%
- Indivior Plc: 10.09%
- Liontrust Asset Management: 10.04%
- Dunelm Group Ltd: 9.40%
- ASOS Plc: 9.19%
- Greggs PLC: 9.09%
- Wood Group: 8.95%
- S4 Capital Plc: 8.70%
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How can I buy HutchMed shares?
HutchMed is a publicly traded company so, you can buy shares using a standard share dealing account.
But if you want to save on tax, consider investing via a stocks and shares ISA. This investment vehicle comes with a tax wrapper that shields your investment gains and income from tax. This could mean that you get to keep more of your returns.
However, keep in mind that tax rules can change and tax treatment will depend on your individual circumstances.
Should I buy Hutchison Med’s shares?
This is a personal decision that you should make after doing your research.
Something worth noting is that HutchMed is currently not profitable. Indeed, according to analysts, it could be two to three years before the company is able to turn a profit.
That being said, there are reasons to be optimistic about the company’s future.
For example, the company predicts significant growth in revenue this year from its oncology business on new approvals for more of its medicines following regulatory reforms in its Chinese home market.
This could potentially have positive implications for the company’s share price. But we’ll have to wait and see, of course.
In closing, remember that all investing is inherently risky. You could get back less than you put in. If you are unsure of the suitability of an investment for your own circumstances, it’s a good idea to get professional advice first.
