Why these 4 ASX shares are surging higher today

After two disappointing days for investors, the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has put in an impressive performance today rising 1.6% to 5,380 points.

Positive offshore leads and a change in global sentiment have been the major drivers behind today’s surge with rising oil prices also helping to lift the mood.

There are obviously a large number of shares in positive territory today, but these four shares in particular are having a great day:


Clydesdale Bank – the National Australia Bank Ltd (ASX: NAB) spin-off is enjoying its strongest day ever following the release of better-than-expected first-half results. The shares have gained more than 11.2% to trade at $5.26 – an increase of more than 30% since it was demerged from the NAB in February. Its results, which were released after the close yesterday, showed a 4.2% decline in underlying pre-tax profits to £107 million (AUD $217 million). Despite this fall in profit, some positive trends have begun to emerge which could see earnings grow strongly over the next period and this is what investors are warming to. Importantly, CYBG noted that lending was growing above the market average and that the bank also expects to reduce costs even more than first anticipated over the next six months.

Programmed Maintenance Services Limited (ASX: PRG)

Programmed Maintenance shares have surged more than 13.5% today after the company re-affirmed its FY17 EBITDA guidance of between $100 and $110 million. This comes despite the company also reporting a net loss of $98 million today for its FY16 results. The reported loss comes after the company booked a large non-cash impairment for its marine services division as well as charges relating to its recent acquisition of Skilled Group. A six-month contribution from Skilled did, however, help to increase revenues by 54.1% to $2.2 billion and raise underlying earnings by 24.5% to $38.8 million.

Despite today’s surge, shares of Programmed Maintenance Services have still lost 34% over the past 12 months.

Australian Agricultural Company Ltd (ASX: AAC)

Shares of Australian Agricultural Company (AA Co) have gained more than 9.3% today after the company announced a $58.2 million increase in full year profits to $67.8 million. The beef and cattle producer also reported a strong uplift in sales with the total kilograms of beef sold increasing by 96% over the previous year. This helped to drive overall sales growth of 44.7% to $489 million. The strong performance comes on the back of a strategic review that resulted in AA Co making a decision to own more of its cattle right throughout the supply chain and to develop valued added products. Investors are clearly pleased with the results, despite the fact the company did not declare a dividend.

Shares of AA Co have gained 14.5% over the past 12 months.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares have rebound strongly today following two days of heavy selling and are now trading 3.8% higher at $33.10. Despite Monday’s profit downgrade, there will be some investors who believe the company’s problems are cyclical in nature and this could be a good chance to pick up the shares on the cheap. Some of today’s gains may also be a result of Credit Suisse raising the stock to an outperform from neutral, but lowering their price target from $41.44 to $38.61.

Shares of Flight Centre have fallen 28.5% over the past 12 months.

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Motley Fool contributor Christopher Georges 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.

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