The S&P / ASX200 (ASX: XJO) is 0.8% higher in trade today after Wall Street posted a strong overnight session on the back of comments from US Federal Reserve chair Jerome Powell that the pace of interest rate hikes may not be as strong as previously flagged. The Australian market has a number of shares racing ahead of the market's gains as well. So let's take a look at what might be triggering the buying.
The Fortescue Metals Group Limited (ASX: FMG) share price is up 3.6% to $4.09 today as the Metal Bulletin reported that iron ore prices rose over the last 24 hours probably thanks to improved demand out of China. Fortescue recently also got a boost on news that its founder and non-executive chairman, Andrew Forrest, bought $23 million worth of shares at prices around $3.90 – only a touch below today's prices.
The Mineral Resources Limited (ASX: MIN) share price is up 2.2% to $15.3o probably on the back of news reports in the Fairfax media that an institutional or professional investor wants to buy a big stake in the $2.7 billion lithium and iron ore miner. According to Fairfax journos the buyer may even be an insider with connections to the company, which suggests some experts in the market feel the business is still undervalued given the potential of its Wodinga lithium mine and other assets.
The Orocobre Limited (ASX: ORE) share price is up 5.6% to $4.33 today after the lithium miner announced that one of its joint venture mining projects in Olaroz, Argentina, will expand after the board of its Japanese joint venture partner gave approval. The total capital expenditure on the new stage 2 project is expected to hit US$295 million, with much of the product destined for a lithium hydroxide plant to be built in Japan.
The WiseTech Global Ltd (ASX: WTC) share price is up 8% to $18.94 today as investors send popular technology shares higher across the board. WiseTech provides cargo shipping logistics software-as-a-service and has an acquisitive and organic growth strategy that has investors desperate to own a slice of the stock. If the US Fed does delay its rate hiking cycle growth stocks like Wistech could benefit as their net present value lifts under the models of analysts that use anticipated risk free rates as one input in assessing valuations.
