The S&P / ASX200 (ASX: XJO) is down 1.7% at 5,586 points this morning as a number of fears over the housing market locally and US China trade war globally continue to encourage investors to hit the sell button.
There aren't many place to hide in the local market today, but these 4 shares are actually ahead this morning. So let's take a look at what might be supporting the buying.
The Newcrest Mining Limited (ASX: NCM) share price is 2.2% higher at $21.45 as the gold price sells for US$1,252 per oz as at 12.00pm AEST. The gold price is up 3% over the last month from a price around US$1,210, although is actually flat over the past year.
Newcrest like other gold miners is a beneficiary if the gold price rises on concerns that the global economy could fall into recession for example, as gold is seen as a 'flight to safety' trade. Newcrest is also a beneficiary of a falling Australian dollar as its mining costs are mainly in Australian dollars, but it sells its gold in US dollars.
BHP Billiton Limited (ASX: BHP) is another blue-chip share that is up 0.8% to $31.43 today despite the iron ore miner releasing no specific news to the market. BHP is about to pay out US$10.4 billion or A$14.4 billion to eligible shareholders in the form of a share buyback and special dividend payment. The special dividend amount will be US$5.2 billion (A$7.3b) divided by the number of shares on issue after a US$5.2 billion share buyback, with some analysts estimating the special dividend will be around A$1.40 per share. If the analysts are anywhere near correct this is a 4.4% yield alone based on today's share price.
The Northern Star Resources Ltd (ASX: NST) share price is up 3% to $8.45 this morning as it's another one of the ASX's best gold miners benefiting as investors bet global geopolitical problems over Brexit, Italy's debt levels, and the US / China trade dispute could send gold prices soaring as it's considered an asset that appreciates in bears markets. Today Southern Gold Limited (ASX: SAU) also announced it has struck an agreement to take over Northern Star's mining lease at the Cannon Gold Mine in WA.
The TPG Telecom Ltd (ASX: TPM) share price is up 0.5% to $7.41 today after the telco announced its joint venture with Vodafone Hutchinson Australia (VHA) called Mobile JV Pty Ltd had secured $263.3 million worth of 5G spectrum in a recent government auction. Today, Telstra Corporation Ltd (ASX: TLS) also announced it had won $386 million worth of 5G spectrum. The battle for market share in the 5G mobile space is shaping up to be crucial to the future direction of these telcos.
