This Tuesday is turning into a cracking one for ASX shares and the wider share market. At present, the S&P/ASX 200 Index (ASX: XJO) has vaulted a pleasing 1.12% higher and is back over 7,500 points. But let's talk about Medibank Private Ltd (ASX: MPL) shares.
As you would expect on such a strong day for ASX shares, many are doing well. But Medibank shareholders will be feeling especially chuffed. That's because shares of this ASX 200 healthcare stock have not just hit a new 52-week high, but an all-time record high.
Yep, Medibank closed at $3.70 a share yesterday. But this morning, the company surged up to a new high watermark of $3.75 a share. That's the highest level Medibank shares have ever traded at.
The company will be celebrating its tenth anniversary as an ASX share later this year (it was privatised back in 2014), so the timing is fitting.
So why is Medibank making its investors so happy this Tuesday with this new high?
Image source: Getty Images
Medibank shares hit new record high
Well, unfortunately for those investors who like to see cause and effect, there doesn't seem to be an obvious catalyst here. Medibank hasn't put out any fresh news or announcements in quite a while. Since 20 December in fact.
It's possible that investors are flocking to the company as a hedge against high interest rates. As my Fool colleague Tristan pointed out last month, as an insurer, Medibank benefits directly from higher rates, as the company is able to generate higher returns from its cash assets that it has to hold to pay out claims.
As we discussed then, Medibank benefitted to the tune of $78.6 million over FY23 from higher rates, with an additional $20 million benefit expected for FY24 if rates remain at their current levels.
So perhaps this is bolstering sentiment for Medibank shares. Particularly at a time when the disastrous 2022 cyber attack is probably fading in investors' minds.
Whatever the cause for Medibank's new high today, no doubt investors will be chuffed.
Medibank shares are now up over 27.8% over the past 12 months. At the current share price of $3.72, this ASX 200 healthcare stock has a market capitalisation of $10.26 billion, with a trailing dividend yield of 3.92%.
