The Australian share market has just started the week in sensational form.
At the close of play the S&P/ASX 200 Index (ASX: XJO) was up 2.45% to 6,144.9 points and the All Ordinaries index (ASX: XAO) was up 2.4% to 6,262.9 points.
While a large number of shares on these indices recorded strong gains, two stood out with particularly impressive gains.
Here's why these two ASX shares smashed the market on Tuesday:
Credit Corp Group Limited (ASX: CCP)
The Credit Corp share price jumped 15.5% to $20.94 on Tuesday. This was despite there being no news out of the debt collector. However, prior to today, Credit Corp's shares were down 52% from their February high. This could mean that bargain hunters were swooping in today on the belief that its shares had been severely oversold during the pandemic.
Credit Corp's shares were sold off over the last few months amid concerns that it might be hard to collect debts during the crisis. So, with things appearing to be a lot better economically than first feared, its collections may not end up being impacted as greatly as its share price weakness implied. In addition to this, thanks to its $120 million equity raising in April, Credit Corp is well-funded and able to ride out this storm.
Zip Co Ltd (ASX: Z1P)
The Zip Co share price was back on form and surged almost 16% higher to $6.54 today. It appears as though investors were taking advantage of a pullback in its share price late last week to top up their positions. That share price weakness was driven by profit taking after an incredible rise following the announcement of its expansion into the $5 trillion U.S. retail market.
Today's rebound means that Zip Co's shares are now up 85% since the start of the year. One broker that doesn't believe the gains are over is Morgans. Last week the broker retained its add rating and lifted its price target on the payments company's shares to $7.00. It was pleased with its acquisition of QuadPay and believes it is a low risk way to enter the key market.
