On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and surged higher.
This led to a number of shares jumping higher with the market, with some of them even managing to climb to new highs yesterday.
Here’s why these ASX shares are flying high right now:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The Domino’s share price touched on a multi-year high of $66.96 on Tuesday. Investors have been buying the pizza chain operator’s shares during the pandemic after the closure of restaurants led to increasing demand for its pizzas. Towards the end of April the company revealed that its Japan and Germany businesses were performing particularly strongly in the second half. Australian same store sales have been positive during the period as well. All in all, it looks well-placed to deliver a solid full year result in August.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price hit a new record high of $15.25 yesterday. Investors were buying the iron ore producer’s shares after the price of the steel-making ingredient jumped higher again. Supply disruption in Brazil and robust demand in China have combined to send the spot iron ore price comfortably over the US$100 a tonne level. In light of this, Fortescue is likely to be generating significant free cash flow at present. Especially given its low cost operations and improving production grades.
MNF Group Ltd (ASX: MNF)
The MNF share price hit a 52-week high of $5.88 on Tuesday. The telecommunications and unified communication technologies provider’s shares have been on fire during the pandemic. This is because the working from home initiative has led to a surge in demand for voice and collaboration technology. At the end of April, the company revealed that it was on track to achieve its operating earnings guidance of $36 million to $39 million in FY 2020. This represents a 32% to 43.4% year on year increase.
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More reading
- Are the Rio Tinto, Fortescue and BHP share prices a buy right now?
- ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
- 5 things to watch on the ASX 200 on Tuesday
- 2 strong ASX dividend shares to bolster your income
- How to build a $20,000 passive income with ASX shares
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MNF Group Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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