The S&P / ASX 200 (ASX: XJO) is down 0.5% in lunchtime trade today after European markets and Wall Street jumped higher overnight on the back of renewed optimism about the chances of a trade deal between the US and China. On the local market there are a number of shares heading higher as well.
So let's take a look at what might be behind the buying today.
The Ramsay Health Care Limited (ASX: RHC) share price is up 2% to $55.87 today despite the private hospital operator releasing no specific news to the market. Ramsay has plenty of organic and acquisitive growth opportunities but due to short-term challenges is only forecasting core earnings per share growth up to 2% in FY 2019. The group currently trades on 20x trailing earnings, with a trailing yield of 2.6% plus franking credits. Healthcare shares in the US have also been on a strong run, the sector reportedly rising 6% over over November alone.
Soul Pattinson and Co. Ltd (ASX: SOL) share price is up 2% to $26.80 today after some relatively heavy falls from a closing price of $27.57 on November 29. The shares have probably fallen after news broke on December 3 that major shareholder Brickworks Limited (ASX: BKW) sold around 2 million shares for gross proceeds of $52 million. Brickworks and Soul Patts have significant cross-ownership stakes in each other, with Brickworks still owning 39% of Soul Patts.
The Nanosonics Ltd (ASX: NAN) share price is up 2.7% to $3.24 despite the hospital disinfectant business releasing no news to the market. Health care shares on Wall Street reportedly posted a gain of 6% in November 2018 and healthcare shares on the local market are now starting to outperform in response. Nanosonics is rated highly as one of the best junior healthcare shares on the ASX by many professional analysts.
The St Barbara Ltd (ASX: SBM) share price is up 3.4% to $3.42 today with the gold price at US$1,240 as at 13.40pm, AEST. Yesterday St Barbara presented at the PNG Oil and Mining Conference held in Sydney where it reported on its Simberi open pit gold mining project in PNG. The strong share price gains suggest investors like what they heard.
