Six large-cap stocks that surged the most in 2021

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Summary

  • The bounce back in construction amidst economic recovery and rising property demand is significant for building, construction, and plumbing materials.  
  • Sydney Airport reported an increase in the total number of passengers in May 2021 from the previous month, driven by quarantine-free Trans-Tasman travel.
  • Commonwealth Bank of Australia sold its CommInsure General Insurance business to the Hollard Group for a consideration of AU$625 million.  

Large-cap stocks of well-established companies come with an added layer of security, with their strong financials better placed to survive market downturns relative to mid or small-cap counterparts. Though retirees take a shine to such stocks offering consistent dividends on top of stable returns, ambitious investors remain reluctant due to their quest to generate hefty returns. 

ALSO READ: Top 10 blue chip shares in Australia

The current economic tailwinds in tandem and strong investors’ interest appear to add lustre to many such large-cap firms, witnessing a significant surge in their share prices.

Let us look at six ASX-listed large-cap stocks that surged the most in 2021. 

Source: Copyright © 2021 Kalkine Media

ALSO READ: Three ASX shares with strong fundamentals

Reece Limited (ASX:REH)

Established in 1920, Reece Group is a leading distributor of waterworks, plumbing and HVAC-R products to commercial and residential customers. The Group operates in Australia, New Zealand, and the United States through its vast number of branches. 

Australia, in its red-hot property market, is witnessing upbeat settings with the construction activities bouncing back. As a result, there is a positive demand trend for building, construction, and plumbing materials.  

ALSO READ: Pandemic Has Turned DIY- Ubiquitous, Reliance Share Price Moves in Sync with Reece

During the first half of FY21 ended 30 June 2021, Reece Group reported a 4% increase in sales revenue while its EBIT and NPAT edged up by 15% and 17%, respectively. 

As on 15 July 2021, Reece shares surged over 51.5% on a year-to-date (YTD) basis, trading at AU$23.14.

Mineral Resources Limited (ASX:MIN)

Mineral Resources is a Perth-based leading mining services company that owns a portfolio of mining operations across several commodities such as lithium and iron. Besides, the Company provides mining services, including capital infrastructure and operational expertise to mining sites in Western Australia and the Northern Territory. 

The Company’s wholly owned subsidiary Energy Resources Limited (ERL) recently secured a drilling rig for the Lockyer Deep 1, a conventional gas exploration well situated in Western Australia’s onshore Perth Basin. 

As of mid-July, MIN shares gave a return of over 58% on the YTD basis and traded at AU$60.79. 

Source: Copyright © 2021 Kalkine Media

ALSO READ: Ride the iron ore rally with these 10 ASX-listed stocks

Aristocrat Leisure Limited (ASX:ALL)

Aristocrat Leisure is an ASX-listed gaming machine manufacturer delivering a range of gaming products such as slot machines, blackjack, craps, roulette, and house-banked card games. 

The Company, in its financial results for the six months ended 31 March 2021, reported a 1% decline in group revenue. NPATA registered an 11.8% increase over pcp, primarily driven by growth in digital.

                     

The Buzzing Trends || Six large-cap stocks that surged the most in 2021

 

In addition to the Group’s land-based business, including Aristocrat gaming and VGT Class II, it has a digital presence with Plarium Global delivering c mobile and browser games. Aristocrat plans to drive strong growth over the full year to 30 September 2021. 

ALL shares gave ~35% increase on the year-to-date basis, trading at AU$42.28 on 15 July 2021.

Sydney Airport Limited (ASX:SYD)

Sydney Airport Limited has ownership of Sydney Airport, located eight kilometres from the city centre and less than 10 kilometres from significant tourist attractions. The Company primarily invests in airport assets, which forms an important part of Australian infrastructure.

ALSO READ: 8 hot ASX-listed transport stocks

The Company reported a month-on-month improvement in May 2021, driven by quarantine-free Trans-Tasman travel. However, total passenger numbers during the month remained 59.1% down over the pcp. 

SYD stock has surged around 22% in 2021 so far, trading at AU$7.81 on 15 July 2021.

Source: Copyright © 2021 Kalkine Media

Commonwealth Bank of Australia (ASX:CBA)

Australia’s largest lender, Commonwealth Bank of Australia, sold its Australian general insurance business, CommInsure General Insurance, to the Hollard Group. Also, CBA established an exclusive strategic alliance for 15 years for distributing home and motor vehicle insurance products to its retail customers in Australia. In addition to deferred payments, the transaction involved a consideration of AU$625 million. 

ALSO READ: Seven hottest ASX-listed banking stocks based on dividend

The Company for Q3 FY21 ended 31 March 2021 reported an unaudited statutory NPAT of around AU$2.4 billion, up by 24% from the previous quarter. 

As of mid-July, CBA shares gave a return of over 17% on the YTD basis and traded at AU$98.31. 

Suncorp Group Limited (ASX:SUN)

Suncorp Group is Australia’s financial services company that provides finance, insurance, and banking services across Australia and New Zealand. 

The Group recently announced the sale of its 50% Joint Venture interest in RACT Insurance Pty Ltd (RACTI) to its JV partner, Royal Automobile Club of Tasmania Ltd. The strategic decision is in line with its portfolio simplification strategy, and the sales consideration involves upfront cash proceeds of AU$83.75 million.

Suncorp has successfully placed its FY22 reinsurance program, with an upper limit of AU$6.5 billion. This covers the motor, home, and commercial property portfolios across Australia and New Zealand.

SUN shares rose around 16% on the YTD basis, trading at AU$11.39 on 15 July 2021.


 


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