Why these 4 ASX shares have surged higher today

Fortescue Metals Group Limited (ASX:FMG) has been pushing higher today as the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) bounces back from yesterday's sharp decline.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been a mixed day so far for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). The index flew out of the traps, but has since given back a lot of its early gains. In afternoon trade it sits higher by just under 0.3% to 5,237 points.

Almost all sectors are in positive territory today with only the energy sector notably lower. Four shares in particular which have stood out today with strong gains are as follows:

Aconex Ltd (ASX: ACX) shares have jumped almost 5% to $5.98 despite no news out of the software as a service company. Its shares have come under heavy selling pressure since its full year results disappointed some brokers. Whilst opinion is largely split on the company and the premium it trades at, I personally think it is looking attractive after a 23% drop in its share price in the last 30 days.

Credit Corp Group Limited (ASX: CCP) shares have rocketed almost 5% to $17.28 in what appears to be a delayed response to the acquisition of National Credit Management from Thorn Group Ltd (ASX: TGA) yesterday. As a result of the acquisition Credit Corp upgraded its PDL purchasing guidance to be in the range of $180 million to $200 million. It doesn't however expect the acquisition to have a material impact on its earnings in FY 2017.

Fortescue Metals Group Limited (ASX: FMG) shares are up around 3% to $4.84 after the iron ore miner announced a US$700 million repayment of its 2019 term loan. The term loan repayment will be made at par on Friday and will generate annual interest savings of approximately US$26 million. Although I've been impressed with the Fortescue Metals turnaround, its future performance will ultimately depend on where the iron price goes. As that is increasingly unpredictable, I would avoid Fortescue Metals and its peers.

Saracen Mineral Holdings Limited (ASX: SAR) shares have surged 6% to $1.41 thanks to a rise in the gold price overnight. The spot gold price rose to US$1,330 an ounce following comments from a member of the Federal Reserve's Board of Governors which appeared to dismiss any chance of a September rate hike. According to Bloomberg, Lael Brainard stated that "the case to tighten policy pre-emptively is less compelling." The gold price is expected to drop if rates rise in the United States.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »