It has been a soft day of trade for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). At the time of writing the benchmark index is down 0.1% to 6,181.7 points.
Four shares that have defied the market and pushed higher today are listed below. Here’s why they are posting strong gains:
The Bellamy’s Australia Ltd (ASX: BAL) share price has climbed 3.5% to $9.79 despite there being no news out of the organic infant formula company. However, with its shares down significantly from their 52-week high I wouldn’t be surprised if bargain hunters have swooped in today. I can’t say I blame them, I think Bellamy’s shares are in bargain territory below $10.00.
The Eclipx Group Ltd (ASX: ECX) share price has risen 2.5% to $2.44 after a report in the AFR claimed that SG Fleet Group Ltd (ASX: SGF) was still interested in making a deal. Last month Eclipx rebuffed an approach that valued the company’s shares at $2.52. SG Fleet shareholders don’t appear too keen on a deal. Its shares have tumbled 3% lower today.
The Liquefied Natural Gas Ltd (ASX: LNG) share price has rocketed 10% higher to 70 cents. Investors appear to be betting on Liquefied Natural Gas being a big winner from increasing demand. Last week Reuters reported that growing demand for LNG in China and a lack of vessels to ship the product has led to shipping rates spiking. According to the report, September shipping rates have reached US$95,000 a day, whereas last year shipping rates were usually in the range of US$30,000 to US$40,000 a day.
The Santos Ltd (ASX: STO) share price has climbed around 3% to $7.33 after oil prices zoomed higher overnight. According to Bloomberg, the WTI crude oil price rose 2.1% to US$72.26 a barrel and the Brent crude oil price surged 3.3% higher to US$81.43 a barrel. In respect to the latter, it was the first time its price had broken through the US$80 mark in four years. The strong gains were driven by news that Saudi Arabia and Russia had ruled out an increase in production in the near term to plug the gap caused by sanctions on Iran.
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Motley Fool contributor James Mickleboro 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.
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