The insurance stock has bounced back from a recent 10-year low.
The post Why did the IAG share price surge 5% on Thursday? appeared first on The Motley Fool Australia. –
The Insurance Australia Group Ltd (ASX: IAG) share price outperformed the market on Thursday despite the companyâs silence.
It was joined in the green by many of its S&P/ASX 200 Index (ASX: XJO) insurance peers.
As of Thursday’s close, the IAG share price is $4.40, up 2.8% on its previous close. Throughout the day, it hit a high of $4.51, representing a 5.4% surge.
For context, the ASX 200 gained 0.3% today while the All Ordinaries IndexÂ (ASX: XAO) rose 0.1%.
Letâs take a closer look at what might have gone on with the insurance giant and its peers on Thursday.
IAG share price rockets 5%
The IAG share price surged higher today despite no news from it or its direct peers.
The stock hit a near 10-year low of $4.02 last week. Thus, todayâs gains might have represented some form of drawn-out rebound.
Additionally, IAGâs home sector â the S&P/ASX 200 Financials Index (ASX: XFJ) â gained 0.7%.
IAG was the financial sectorâs third-best performer today. It was beaten by Pinnacle Investment Management Group Ltd (ASX: PNI) and Virgin Money UK CDI (ASX: VUK). They ended the day higher by 3.92% and 3.18% respectively.
Weighing on the ASX 200 financials sector was the Zip Co Ltd (ASX: ZIP) share price. It hit a new multi-year low of 44 cents today.
Unfortunately, todayâs gain wasn’t enough to bump the IAG share price back into the longer-term green.
Itâs now down 1.35% year to date and has slumped nearly 13% since this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PINNACLE FPO and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited and PINNACLE FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.