In late morning trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is pushing higher. At the time of writing the benchmark index is up 0.25% to 5,770.9 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

The Austal Limited (ASX: ASB) share price is up over 5% to $3.52. Investors have been buying the shipbuilder’s shares after it upgraded its FY 2020 guidance at the end of last week. One broker that has responded positively to this upgrade was Citi. This morning the broker retained its buy rating and lifted the price target on Austal’s shares to $4.05.

The CSL Limited (ASX: CSL) share price is up 3% to $284.46. Investors appear to be taking advantage of the biotherapeutics company’s recent share price weakness to top up positions. Even after today’s gain, CSL’s shares are down 17% from their 52-week high. Concerns over the pandemic’s impact on plasma collections has been weighing on the company’s shares.

The Fortescue Metals Group Limited (ASX: FMG) share price is up 3% to $14.30. The catalyst for this gain has been a jump in iron ore prices on Friday night. The spot benchmark iron ore price climbed above US$100 a tonne amid concerns over supply disruptions in Brazil because of the pandemic. According to CommSec, iron ore rose by US$4.50 or 4.7% on Friday to US$100.90 a tonne.

The Star Entertainment Group Ltd (ASX: SGR) share price has stormed almost 6% higher to $3.12. This follows the release of two announcements on Monday by the casino and resorts operator. The first was a new long-term gaming tax agreement with the New South Wales government. The other was the announcement that its Star Sydney business will reopen today. This will see private gaming rooms open and up to 12 food and beverage venues within the complex.   

More reading

• 3 top ASX dividend shares to buy now
• 5 ASX 200 winners and 3 losers from last week
• Why ASX iron ore miners may outperform this morning
• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000
• 5 things to watch on the ASX 200 on Monday

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 Austal Limited and CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Last Friday, 3 S&P/ASX 200 Index (ASX: XJO) blue-chip shares were included in the MCSI Australia Index. These were Afterpay Ltd (ASX: APT), Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST). Notably, 2 of the 3 inclusions came from the gold mining sector. 

Once a share is included in an MCSI index it is automatically added to the portfolios of EFTs tracking that index. One example is the Vanguard MSCI Australian Large Companies Index ETF (ASX: VLF). With billions of dollars in play, any small change can cause large scale ripples.

Last week, all 3 companies saw their share prices rise considerably from a mid-week low point. In my opinion, they are positioned to enjoy a continued rise in share prices this week.

Blue chip winners

Afterpay is the most prominent and reported on ASX 200 share today. It is nothing short of a phenomenon. Last week, the company’s share price rose 4.98% from its low on Wednesday to Friday’s close. The current Afterpay valuation is a point of contention among investors. Nonetheless, its position as a growth share is clear. 

Northern Star has been the best growth share on the ASX 200 over the past 10 years. An initial investment on 1 January 2010 would have grown an amazing 490 times so far. From Wednesday’s low to Friday’s close last week, the Northern Star share price rose by 10.83%.

The company is known for increasing the gold reserves and production output of mines it acquires. It recently purchased 5% of the Kalgoorlie super pit mine site. This included the operating rights. In my opinion, it set to continue its share price rise.

Evolution Mining is another Australian blue chip gold miner that is known for its productivity. Its most recent acquisition, Red Lake, is likely to see an improvement in productivity. Evolution shares rose 10.37% from their low point on Wednesday last week to Friday’s close. 

Make room

In addition, 8 companies were dropped into the MSCI World Small Cap Index. These were Alumina Limited (ASX: AWC), Bendigo and Adelaide Bank Ltd (ASX: BEN), Boral Limited (ASX: BLD), Challenger Ltd (ASX: CGF), Flight Centre Travel Group Ltd (ASX: FLT), Harvey Norman Holdings Limited (ASX: HVN), Incitec Pivot Ltd (ASX: IPL), and Worley Ltd (ASX: WOR).

More reading

• Afterpay share price rockets 50% in May, is it in the buy zone?
• 3 best stocks for ASX 200 investors in retirement to buy now
• Why the price of these ASX travel shares soared over 30% since mid-May
• 3 top ASX dividend shares to buy now
• 3 ASX 200 shares to watch this week

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel 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.

The post Why these 3 ASX 200 blue chips could be set for growth this week appeared first on Motley Fool Australia.

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