Sector Roundup
Health Care Sector: Why defensives are back in favour
Jan 18, 2026
Rate uncertainty and global volatility are driving flows into ASX health care names like CSL and Polynovo.
Health care stocks have outperformed the broader ASX over the past month as investors rotate into defensive growth amid macro uncertainty. The sector offers earnings visibility, low correlation to commodity cycles, and exposure to structural demand themes.
CSL remains the sector bellwether, with plasma collection volumes tracking ahead of expectations and pipeline catalysts in immunology providing upside optionality. The stock trades at a premium to the ASX 200 but has historically justified that premium through consistent execution.
Polynovo continues to build market share for its NovoSorb wound care products, with international expansion providing the next leg of growth. Revenue growth has been strong, and the company is approaching profitability.
Investors seeking defensive exposure with growth characteristics should monitor this sector closely, particularly if interest rate uncertainty persists.