In afternoon trade the S&P/ASX 200 Index (ASX: XJO) looks set to end the week in a very positive manner thanks to news of a promising COVID-19 treatment. At the time of writing the benchmark index is up 2.5% to 5,554.1 points.
Four shares that have climbed more than most today are listed below. Here's why they are surging higher:
The Afterpay Ltd (ASX: APT) share price has stormed 10% higher to $30.17. Investors have overlooked a bearish broker note by UBS this morning that reiterated its sell rating and lowly $13.00 price target. The market may believe that an effective COVID-19 treatment could mean businesses open up much sooner than expected and support the usage of its buy now pay later platform.
The Bapcor Ltd (ASX: BAP) share price has climbed 7.5% to $5.17. This morning the auto parts retailer's shares returned to trade after successfully completing a $180 million underwritten institutional placement at a price of $4.40 per new share. These funds will be used to reduce its net debt position and gearing.
The Qantas Airways Limited (ASX: QAN) share price is flying 8.5% higher to $3.77. News of the potential COVID-19 treatment has given travel and tourism shares a big boost on Friday. An effective treatment for the virus could lead to borders opening sooner than expected. This would be a big positive for the tourism sector which has been battered by the pandemic.
The Rio Tinto Limited (ASX: RIO) share price is up a sizeable 4% to $91.97. This morning the mining giant released its first quarter update and revealed solid production and shipments. As a result of the strong quarter, Rio Tinto remains on track to deliver on the majority of its production guidance for the full year. It also reiterated its unit cost guidance for iron ore and copper production.
