These FTSE 100 risers have been topping the charts since the 23 March stock market crash. Polymetal International (LSE:POLY) and Intermediate Capital Group (LSE:ICP) have been making great gains as the coronavirus pandemic rages on. But the question is, will their bull run continue?
Glinting in the sun
FTSE top riser Polymetal International has seen its share price advance close to 44% since the market crashed a month ago.
A leading precious metals mining group, Polymetal has benefited from the rising price of gold, but it’s also doing well operationally. So far, its operations have not been impacted by the Covid-19 pandemic.
Are gold stocks a good investment?
Polymetal has a portfolio of nine ‘producing’ gold, silver and copper mines and exploration projects in Russia and Kazakhstan. It has a £7bn market cap, a price-to-earnings ratio (P/E) of 16, earnings per share of £1.01 and a 4% dividend yield.
CEO Vitaly Nesis reported a strong start to the year in Polymetal’s Q1 2020 production results. That was mainly thanks to rising gold output at its Kyzyl mine in Kazakhstan, where production was up 39% year-on-year.
Despite a consistent share price climb in recent years (over 200% in the past five years), I think this stock has further to rise. The bulls are still rallying on gold, and the demand for other precious metals follows suit.
If we slip into a recession in the coming months, then I’d imagine gold prices will rally further. For these reasons, I think gold stocks are a good investment and Polymetal appears to be leading the way.
Another FTSE 100 riser
While the financial sector suffers, Intermediate Capital Group has been thriving. The ICP share price is up 45% since last month’s stock market crash. Its business centres around providing capital to help companies grow.
Earlier in April, its real estate arm, ICG-Longbow, announced a £25m investment in Proximity Data Centres. The pandemic is likely to increase the demand for data centres and digital connectivity. This cash injection provided by ICP will help Proximity grow and meet this demand.
Intermediate Capital Group has a P/E ratio of 15, its earnings per share are 63p and its dividend yield is 4.6%.
There’s no doubt financial companies are in a risky position, but ICP seems to be worth watching. I like that it invests in companies to help them grow. The future is uncertain for many, but we can be sure there will be eventual winners. A company like ICP is in a good position to choose carefully and invest in those with promise.
In its Macro Views report released today, ICP says a difficult few months ahead are to be expected. But government economic support and virus suppression policies are laying the foundations for recovery later in 2020.
ICP provides several strategies and funds aimed at institutional investors. As the economy gets back on its feet, demand from institutional investors will continue to grow.
Both these stocks have seen their share prices rise and at a time when dividends are being slashed left, right and centre, their dividend yields look appealing.
