ASX Hot stocks: Fortescue, Qantas and Lend Lease

ASX surges 0.7%, despite weak leads from offshore

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

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has closed up 0.7%, at 4,825.9, after mounting a comeback from earlier heavy falls and jumping at the close. Again it was the big banks doing the heavy lifting, while resources stocks fell. No surprise then that the financial sector was the best performer, while utilities and consumer staples also saw decent gains.

Here’s why these three stocks are hot right now.

Fortescue Metals Group (ASX:FMG) lost 2.7% to close at $3.25, as shares in the iron ore miner continue to slide. Back in February, Fortescue was trading above $5, as the iron ore price rose to more than US$150 a tonne. Iron ore has slipped since then, dropping to US$110 a tonne, but is up slightly to US$114 a tonne. With Fortescue being a pure iron ore play, further falls in the iron ore price could see the company forced into unwanted action, such as asset sales, or cutting back its expansion program.

Qantas Airways Limited (ASX:QAN) gained 2.6% to end at $1.40, with media reports suggesting that China Southern was considering buying a 10-15% stake in the Flying Kangaroo earlier this year. Chinese airlines are growing rapidly and plan to ramp up flights to Australia. Qantas recently expanded its code share agreement with China Eastern, which included a co-investment in Jetstar Hong Kong. China is now Australia’s second-largest source of foreign visitors, behind New Zealand.

Lend Lease Limited (ASX:LLC) fell 7.5%, to close at $8.65, after the property and infrastructure developer and manager announced that it was restructuring its Australian construction and infrastructure business. Lend Lease also announced that it will incur substantial restructuring costs this financial year, as it battles weak construction markets, both in Australia and Europe. While the company said that its expected earnings would be in-line with market forecasts, it seems investors weren’t having a bar of it.

In the market for high yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned.

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 »

asx share price competitions represented by businessmen arm wrestling
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 »

person reading news on mobile phone
⏸️ 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 »