MENU

Why these 3 resource stocks are on the S&P/ASX 200 gains today

The overall S&P/ASX 200 index is sluggishly redeeming itself after a period of downturn following Wall Street hiccups, but these 3 resource stocks are logging gains irrespective.

Fortescue Metals Group Limited (ASX: FMG)

Shares in iron ore production and exploration company Fortescue Metals Group Limited are on the top of the S&P/ASX 200 gainers today with a share price rise of 2.5% to $4.37 at the time of writing.

Fortescue has been in the news this week for cutting iron ore price expectations as Trump-inspired trade war fears and slowing of the Chinese construction sector weighed on forecasts.

But investors are rallying behind the Pilbara-based resource stock, with share prices back on the up after a 12-month period of downturns from a $6.42 share price at this time last year.

Fortescue recently reported a net profit of US$681 million for the half-year to December 31, 2017 with an interim dividend of 11c per share fully-franked.

Fortescue also announced the launch of a US$1.4 billion debt repayment offer via a tender, with note holders able to tender their 2022 Senior Secured Notes at US$1.10 per US$1.00 of principal.

Beach Energy Ltd (ASX: BPT)

Shares in oil and gas explorer Beach Energy Ltd were up 2.4% to $1.26 at the time of writing – another S&P/ASX 200 commodity share on the gains list today.

Beach holds interest in exploration and production tenements in Australia, Tanzania, New Zealand and Romania and its share price has tracked up steadily in the last 12-months from a 52-week low of 55c per share.

While Beach Energy shares are performing well, a takeover bid on Santos Ltd (ASX: STO) saw a stock price surge of 21% yesterday, although things have settled today with Santos shares down 0.3% at the time of writing to $5.87.

But all eyes in the sector right now are focused on Sundance Energy Australia Ltd (ASX: SEA) after Morgan’s announced a forecast increase of 255% on the share price this week slapping an add recommendation on the stock after Sundance purchased 21,900 acres of land in the US as part of a transformative acquisition.

Mineral Resources Limited (ASX: MIN)

Shares in mining services player Mineral Resources Limited have surged up today beside its commodity brothers – rising 1.4% to $17.24 at the time of writing despite a broker downgrade out of Ord Minnett last month.

Ord Minnett downgraded Mineral Resources to accumulate from buy, lowering its price target on the stock from $20.50 to $19.50 in late March.

Ord Minnett named Orocobre Limited (ASX: ORE), Galaxy Resources Limited (ASX: GXY) and Kidman Resources Ltd (ASX: KDR) as better buys at present.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the 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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.