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Why Credit Corp, IOOF, Mesoblast, & Oil Search are surging higher

The S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and stormed higher on Thursday. In late morning trade the benchmark index is up 1.45% to 5,471.6 points.

Four shares that are climbing more than most today are listed below. Here’s why they are surging higher:

The Credit Corp Group Limited (ASX: CCP) share price has returned from its trading halt and jumped 13.5% higher to $16.05. This morning the debt collector announced the successful completion of its fully underwritten institutional placement to raise $120 million. These funds were raised at $12.50 per share and will be used to strengthen its balance sheet and pursue debt purchasing opportunities.

The IOOF Holdings Limited (ASX: IFL) share price is up 0.5% to $4.13. Investors have been buying IOOF’s shares after it revealed a sharp increase in funds under management, advice and administration (FUMA). IOOF’s FUMA grew by 34.2% or $49.8 billion over the three months to reach $195.6 billion at the end of March. This was driven largely by the acquisition of the OnePath business from Australia and New Zealand Banking Group (ASX: ANZ), which offset unfavourable market movements.

The Mesoblast limited (ASX: MSB) share price is up 4.5% to $3.30. This morning the cellular medicine developer announced the start of the enrolment of a Phase 2/3 randomised, placebo-controlled trial. This trial aims to rigorously confirm whether its remestemcel-L product provides a survival benefit in moderate/severe acute respiratory distress syndrome (ARDS) due to COVID-19. More than 20 medical centres across the United States will participate in the trial.

The Oil Search Limited (ASX: OSH) share price has surged 7% higher to $2.95. Investors have been buying Oil Search and other energy shares after oil prices rebounded strongly overnight. The catalysts for this were a softer than expected oil inventory build up and positive data from Gilead Sciences’ coronavirus treatment trial. The latter is sparking hopes of a quicker economic recovery from the pandemic. This would be good news for oil prices.

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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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