Blood Beats Banking With CSL Becoming Australia Biggest Firm

(Bloomberg) --

Australia’s benchmark stock index has a new leader: A biotechnology firm that makes therapeutic products from human blood.

With a market of A$142 billion ($93 billion), CSL Ltd. now accounts for 8.2% of the S&P/ASX 200 Index, compared with 8.1% for Commonwealth Bank of Australia, whose market cap dropped to A$140 billion as of Tuesday’s close. The Melbourne-based firm charged ahead of CBA after Australia’s central bank cut its benchmark rate, which sent bank shares lower. The benchmark gauge fell on Wednesday, heading for its lowest close since June.

The unseating of CBA is notable in a market that’s dominated by banks. The nation’s big four lenders -- CBA, Westpac Banking Corp., Australia & New Zealand Banking Group Ltd. and National Australia Bank Ltd. -- make up about a fifth of the S&P/ASX 200 Index.

CSL collects blood plasma from donors and turns it into therapies to help patients who have autoimmune disorders or problems with blood clotting. It also manufactures flu vaccines through its Seqirus business.

Both market giants reported a bright start to the current financial year. CSL raised its profit target amid strong growth in immunoglobulin sales, while CBA earnings beat estimates, posting an improved mortgage book and no extra misconduct surprises.

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