Australian equities as a whole have had a strong start to 2019 after a difficult second-half of last year. These three stocks have helped lead the market higher with an especially strong performance in January.
The A2 Milk Company Ltd (ASX: A2M) share price is up 17% since the beginning of 2019 despite not having released much in the way of announcements, aside from an expansion to its executive team. The share price has benefited from strong momentum over the past four months fueling a climb from $8.34 to its current price of $12.17.
Investor sentiment was boosted with the release of a trading update in November which showed a strong start to the first half of the 2019 financial year. The first four months of FY19 showed 64.5% profit growth on the previous corresponding period. The rapidly growing company still has a very long runway, as it looks to continue its expansion into Chinese and US markets.
Afterpay Touch Group Ltd (ASX: APT) is another strong performer so far this year, having gained 37% since the start of January. The share price has risen on the back of a business development update in January as well as increasingly positive sentiment about the company's regulatory outlook.
In its business development update, Afterpay showed strong sales growth in its Australian & New Zealand business as well as further evidence that its US expansion is taking off well.
Afterpay stuck to its guns at the recent Senate inquiry, saying that it is not a provider of credit and should not be treated as such. The market appeared to like the tone of the inquiry, with shares responding positively.
Polynovo Ltd (ASX: PNV) shares are 12% higher year-to-date in response to several positive market updates.
A sales update for the first half of the 2019 financial year affirmed that the company's patented Novosorb wound treatment technology is growing in line with expectations, posting 319% sales growth on the previous corresponding period.
The biotech small cap has also announced that it was granted regulatory in approval in Malaysia, and that it is expanding its production facility to support its rapid growth.
