Shares in the newly created Westfield Corp (ASX: WFD) have risen strongly today, popping 15c or 2.1% to now be trading at $7.44. The shares are now trading an impressive 11% higher than when they first debuted on the ASX just under two weeks ago.
In the same time, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has risen 1.8%, while Scentre Group (ASX: SCG) has actually retreated 2%. Westfield Corp was created as part of the Westfield Group and Westfield Retail Trust restructure and will own and manage all of Westfield's international assets (not including those in New Zealand).
Here are three reasons why the shopping centre giant might have jumped so strongly today.
- Investors may be starting to recognise the company's strong prospects overseas. Westfield Corp has some extremely promising shopping malls in the US and UK, including the World Trade Centre mall in New York as well as Westfield London.
- Data from the U.S. last week showed that the world's largest economy had added 288,000 jobs in June – well above what the market had been expecting. This highlights the speed at which the U.S. economy is recovering which should lead to an increase in consumer and business confidence (which is obviously good for retail).
- The Reserve Bank has once again 'jawboned' the Aussie dollar which has since fallen to 93.47c. This is good for Westfield Corp which will generate its revenue in overseas markets.
Should you buy Westfield Corp?
Considering the strength at which the U.S. economy is recovering, now may be a good time to buy shares in Westfield Corp – particularly with the Aussie dollar looking likely to fall even further. However, there is another stock which I believe may deliver investors even greater benefits…