Although the market tumbled lower on New Year’s Eve, that didn’t stop some shares from pushing higher.
A few even managed to climb to new 52-week highs or better. Here’s why these ASX shares are on fire right now:
City Chic Collective Ltd (ASX: CCX)
The City Chic share price hit a multi-year high of $4.08 at the end of last week. Investors have been fighting to get hold of the retailer’s shares since it announced a major new acquisition. Last month City Chic revealed an agreement to acquire UK-based women’s plus-size clothing retailer Evans for 23.1 million pounds (A$41 million). The acquisition, which has since completed, is expected to be highly accretive to earnings in the future.
Dusk Group Ltd (ASX: DSK)
The Dusk share price jumped to a record high of $2.09. The catalyst for this was a recent trading update by the home fragrance product retailer. According to the release, management expects sales for the first half of FY 2021 to be in the range of $90 million to $90.5 million. This compares to its sales of $58.7 million for the first half of FY 2020. In respect to earnings, Dusk is expecting earnings before interest and tax (EBIT) to be between $26 million and $27 million. This is more than double FY 2020’s first half EBIT of $9.7 million.
Galaxy Resources Limited (ASX: GXY)
The Galaxy Resources share price continued its positive run and hit a two-year high of $2.33. Investors have been buying Galaxy and other lithium miners amid optimism over demand for the battery making ingredient. This is due to the growing adoption of electric vehicles and US President-elect Joe Biden’s plan to lead a transition to renewable energy. This latest gain meant the Galaxy share price rose over 120% during 2020.