The Northern Star Resources Ltd (ASX: NST) share price is outperforming the benchmark today in a strong finish to a rather wobbly week.
Northern Star shares closed yesterday at $10.15 and are currently trading for $10.30, up 1.48%.
By comparison the S&P/ASX 200 Index (ASX: XJO) is up 0.6% today.
Why is the Northern Star share price outperforming?
It’s not just Northern Star shares posting strong gains today.
Fellow ASX 200 gold share Evolution Mining Ltd (ASX: EVN) is up 1.54% today, while Newcrest Mining Ltd (ASX: NCM) shares have gained 1.7%.
All up, the S&P/ASX All Ordinaries Gold Index (ASX: XGD), which contains ASX gold shares outside of the ASX 200, is up 1.64% at the time of writing.
Among other factors, Northern Star shares look to be getting a boost from an uptick in gold prices. An ounce of gold is currently trading for US$1,934 per troy ounce. That’s up from US$1,925 yesterday, according to data from Bloomberg.
Its shares could also be getting a lift from a positive assessment from broker Morgan Stanley.
As the Motley Fool reported yesterday, Morgan Stanley has a bullish outlook for the price of gold, and Northern Star ranks among its top two picks among ASX gold shares.
According to Morgan Stanley:
NST has the highest FCF [free cash flow] generation of our coverage and offers the most sensitivity to upside gold prices, with lowest downside due to well-priced hedges. NST also has a near-term catalyst with its brownfield expansion at KCGM.
How has Northern Star been tracking?
With gold prices on the upswing, the Northern Star share price has gained almost 10% since the opening bell of 4 January, compared to a year-to-date loss of 1.3% posted by the ASX 200.
The post Why is the Northern Star share price having such a positive end to the week? appeared first on The Motley Fool Australia.
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More reading
- Yield curve inversion is bad news for ASX shares except for this sector
- 5 things to watch on the ASX 200 on Wednesday
- Why has the Northern Star (ASX:NST) share price gained 23% in 2 months?
- 5 things to watch on the ASX 200 on Monday
- Top ASX shares to buy in April 2022
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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