Why Afterpay, Bapcor, Qantas, & Rio Tinto shares are surging higher

Afterpay Ltd (ASX:APT) and Rio Tinto Limited (ASX:RIO) shares are two of four that are surging higher on Friday. Here's why…

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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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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