When the market moves as one it usually results in creating a lot of good shares to buy. If I had $5,000 on hand, I would place $1,000 into each of the following shares as I'm confident they will rebound strongly in the near term.
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Mining sector
Fortescue Metals Group Limited (ASX: FMG) has fallen by 2.19% since the close of trading on Wednesday. Yet the iron ore market remains very strong. In addition, production opportunities have opened up due to a raft of issues facing Brazilian miner, Vale. The company also has several multi-billion-dollar projects underway right now.
In the short term, the iron ore price is likely to stay around the $100 mark as the world is spending billions of dollars on infrastructure stimulus as a means of reducing the economic impact of the lock-downs. For me, Fortescue remains a strong buying opportunity and I think it is well priced right now. I already own Fortescue shares, yet I would happily invest another $1,000 here.
BHP Group Ltd (ASX: BHP) has also fallen by 2.42% from close of trading on Wednesday to the close of trading on Thursday. Yet the company is the world's largest miner. It is also a major player in iron ore, copper, and nickel. The last 2 metals are very future-facing and likely to see increasing demand as the world moves to electric cars. I think a $1,000 investment here would be of good short-term value.
Downer EDI Limited (ASX: DOW) has dropped by over 9% from the close of trading last Friday to the close of trading on Thursday. Yet the company has recently sealed a deal with Fortescue for $450 million in construction works over 5 years at the Eliwana iron ore mine.
Real estate shares to buy
The Vicinity Centres (ASX: VCX) share price has fallen by 9.4% from Friday to the close of trading on Thursday. This company has been the subject of very heavy trading over the past 3–4 weeks. The retail sector is the only focus of Vicinity Centres.
However, I think that this company is oversold. At this price, the company has a 12-month trailing dividend yield of 11.62%. This is still a good entry point even with suspended dividend payments. The company recently reduced its gearing via a capital raising and is undertaking a raft of cost-cutting measures. A great company to buy with $1,000.
Tech shares
I think Tyro Payments Ltd (ASX: TYR) has been oversold. The company has seen its share price fall by more than 9.4% since the close of trading on Friday. However, the company has increased its transaction value by 16% in FY20 to date compared with the previous corresponding period. It has muscled its way to fifth place in the nation's payments processor sector of all authorised deposit-taking institutions (ADI). This is just after the big 4 banks.
I am very bullish on this company and I think that it is a wonderful share to buy at this price. I would happily invest $1,000 into Tyro.
