Following a mixed session for global equity markets overnight, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to edge slightly closer to the prized 6,000 point level.
While it hasn't traded above 6,000 points since January 2008, it has come extremely close to breaking through twice in the last three weeks. It's currently hovering just over 0.1% higher for the day at 5,963.5 points.
Here are two stocks that are helping to drive the market higher:
Senex Energy Ltd (ASX: SXY) has risen 4.9% to be trading at 32 cents per share following a strong night for oil prices. Brent crude rose 1% to almost US$56 a barrel, defying the market's massive oversupply situation thanks, in large part, to a weaker US dollar. Unfortunately, the rebound could be short-lived with further falls in the oil price expected.
G8 Education Ltd (ASX: GEM) has also risen 2.8% to be trading at $3.72 after the childcare centre owner announced a fully franked 6 cent per share dividend for the quarter ending 31 March 2015. Should the company maintain that dividend (equating to 24 cents per share annually), the stock would be trading on a fully franked yield of 6.5% based on its current price (or 9.2%, grossed up).
Unfortunately, there are plenty of companies that are also acting as a weight on the index, including these two:
Kathmandu Holdings Ltd (ASX: KMD) has seen its shares crash more than 12% following yet another disappointing earnings report. While sales rose 7%, the embattled retailer reported a net loss of NS$1.84 million while its earnings before interest and tax (EBIT) declined 97% to just NZ$600 thousand. Operating expenses increased while its margins fell dramatically as a result of heavy discounting to attract customers. As my colleague Brendon Lau said this morning, there is "no light at the end of (Kathmandu's) cold dark tunnel".
Monadelphous Group Limited (ASX: MND) has also seen 7.9% wiped from its share price. Although the mining services contractor hasn't released any news which would explain the sharp fall, it's likely that investors are taking their profits after a strong rally for the stock, which bucked the trend set by most mining services companies. As miners increasingly take their services in-house, companies like Monadelphous should be avoided by long-term focused investors.
