Why AUB, Austal, Core Lithium, and Xero shares are pushing higher

A man clenches his fists in excitement as gold coins fall from the sky.

A man clenches his fists in excitement as gold coins fall from the sky.

The S&P/ASX 200 Index (ASX: XJO) looks set to end the week in style. In afternoon trade, the benchmark index is up 0.7% to 7,286.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are pushing higher:

AUB Group Ltd (ASX: AUB)

The AUB share price is up 7% to $27.77. Investors have been buying the insurance broker’s shares after it completed an institutional placement. While a capital raising usually sends a share crashing lower, this one has had the opposite effect. Investors appear pleased with an earnings guidance upgrade which accompanied the announcement and the reason behind the capital raising.

Austal Ltd (ASX: ASB)

The Austal share price is up 25% to $1.99. This has been driven by news that the shipbuilder has been awarded a major contract by the US government. The cumulative value of the contract would come to US$3.2 billion (AU$4.8 billion) if all options are exercised. This is a major confidence boost given the recent indictment of three former Austal USA employees by the United States Department of Justice.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 6% to $1.17. This morning, the lithium miner announced that its board has approved the capital expenditure for the early works of the BP33 underground project. Core Lithium expects to spend a total of $45 million to $50 million on the early development of the next proposed mine at the Finniss project.

Xero Limited (ASX: XRO)

The Xero share price is up a further 4% to $106.97. This cloud accounting platform provider’s shares have been on fire since the release of its full-year results. They have also been given a boost today from a few bullish broker notes. One of those came from Goldman Sachs, which has retained its buy rating with an improved price target of $130.00.

The post Why AUB, Austal, Core Lithium, and Xero shares are pushing higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Austal and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Aub Group. 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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