The S&P / ASX200 (ASX: XJO) is up 0.4% to 5,666 points in morning trade today after Wall Street posted gains across its major indices overnight after a series of big falls over the last two months. There are a number of well known stocks trading far higher than the index today though. So let’s take a look at what may be supporting some of today’s top performers.
The A2 Milk Company Ltd (ASX: A2M) share price is up 6.2% to $9.93 today, with rival infant formula group Bellamy’s Australia Ltd (ASX: BAL) also up 10% to $7.93 despite neither company releasing any specific news to the market. Both businesses are heavily reliant on sales in China, which is a market subject to changing regulations, licensing and restrictions. The volatile share price moves are often related to sentiment over the businesses’ outlooks in China.
The Mineral Resources Limited (ASX: MIN) share price is 21% higher to $15.06 today after the WA-based iron ore and lithium miner revealed it has struck a joint venture agreement with US group Albermale Corporation to develop its Wodinga lithium mine. The agreement sees Albermale invest $1.58 billion in the Wodinga mine in return for a 50% ownership interest. Albermale reportedly has expertise in marketing and selling lithium worldwide and as such it seems investors are embracing the deal’s potential.
The Galaxy Resources Limited (ASX: GXY) share price is up 6.8% to $2.66 despite the West Australian and Argentina-based lithium miner releasing no specific news to the market. Galaxy share are probably getting a lift today due to the $1.58 billion investment in its lithium-ming rival Mineral Resources announced today. Galaxy posted a net profit of US$11.5 million for FY 2018 and as at September 30 2018 had US$68 million cash on hand for further mining investments.
The CSL Limited (ASX: CSL) share price is 2.2% higher to $182.64 despite the blue-chip healthcare giant releasing no news to investors. CSL shares are still down 21% from September highs as “growth” shares took a battering on the back of investor jitters over the US / China trade conflict and requirement for a Brexit deal in the UK. Despite the share price falls, CSL is maintaining guidance for 10%-14% profit growth in FY 2019.
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Motley Fool contributor Yulia Mosaleva owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. 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.