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Buzzing Trends. Today we will be looking at Three ASX 200 shares with highest year-to-date gains.
The Australian market has had a volatile start to 2022, as the benchmark index fell
6.35% January alone, closing the month at 6,971.6. However, February 2022 is turning
out to be a month of much-needed relief with the market having recovered sharply from the lows
seen in January 2022. A few ASX 200 stocks have had a great rally so far this year
and have made investors happy with their market-beating returns. Let us have a look
at three ASX 200 shares that have already delivered over 20% year-to-date returns.
First up. NSW-headquartered Champion Iron is primarily into the exploration and development
of iron ore projects and works through its two subsidiaries – Champion Iron Mines and Quebec
Iron Ore – both of which are 100% owned. The company has a market capitalisation of AU$3.54
billion and clocked a multi-fold increase in net profit in financial year 21, at AU$0.46 billion,
compared to AU$0.09 billion in financial year 20. Champion Iron share price has rallied 28.5%
this year and is currently standing at AU$7.05 per share. The primary reason for the rally could be
linked to surging iron ore prices, which have been rallying after bottoming out in November 2021. On
8 February, the iron ore prices surged past US$150 per tonne, first time since September last year.
Next. Woodside Petroleum is one of the most prominent energy companies in Australia
and the largest natural gas producer in the country, having a market capitalisation
of AU$26.2 billion. The company aims to invest US$5 billion on reducing carbon emissions by 2030.
Woodside Petroleum shares’ year-to-date return of 16.81%,
has primarily been supported by strong crude oil prices. Currently trading
near 7-year highs at around US$90 per barrel, oil prices have witnessed a consistent rally,
which in turn has helped it to expand its margins. Woodside Petroleum shares are trading at AU$26.58.
Lastly. Santos is the second-largest oil and gas producer in Australia,
with a market capitalisation of AU$25.74 billion. With a rich portfolio of LNG, pipeline gas and oil
assets under its belt, the company is also looking into clean energy opportunities.
No doubt, a rally in crude oil prices has also had a direct impact on Santos shares
which have rallied 12.86% so far this year to the last traded price of AU$7.46.
The above-mentioned ASX 200 companies are some of the most prominent businesses in the country
and these lucrative returns are generally not realised in a short-term.
These returns were possible on the back of strong underlying commodity prices,
which are cyclical in nature and hence, make investing in these commodity-based businesses
a bit more complex. Therefore, before investing in such companies,
proper due diligence, including a firm outlook on the underlying commodity prices, is a must.
Well, that’s all for now. We will be back soon with our Buzzing Trends show to share
the latest market insights with you. Till then, Stay tuned with Kalkine TV for more stock,
business and economy related hot trends.