What: Downer EDI Limited (ASX: DOW), SKYCITY Entertainment Group Limited-Ord (ASX: SKC) and Platinum Asset Management Limited (ASX: PTM) were amongst the biggest gainers in the S&P/ASX 200 (INDEXASX: XJO) on Monday.
While the index rallied 0.9% to 5,319 points, Downer, SKYCITY and Platinum each gained an impressive 6.2%, 3.7% and 3.5% respectively.
So what: In the case of engineering specialist firm Downer EDI, the group announced the $300 million acquisition of contractor Tenix. The acquisition is an exciting one for Downer's shareholders as it represents a new avenue of growth opportunities for the group in the power, gas and water sectors.
Meanwhile Friday's annual general meeting (AGM) of shareholders in SKYCITY would appear to be behind Monday's share price bounce. The AGM was told that the first quarter of business was tracking well with revenues up 6% despite ongoing construction work at the group's Adelaide Casino. Shareholders were also no doubt excited by management's comments that SKYCITY will target a bigger slice of the VIP market.
With no specific news to explain the jump in Platinum's share price, the gains were no doubt in response to the rally in global equity markets. As an international investor, Platinum's funds under management and hence management fees are swayed by equity market levels.
Now what: With Downer's share price still near its 52-week low, having sunk like most other contractors and mining service providers over the past year, the acquisition of Tenix could potentially act as a catalyst for the stock.
SKYCITY's share price hit a new 52-week low in the past month which is arguably at odds with the casino operator's performance. First quarter guidance showing that the business continues to grow could help turn around the group's share price performance.
Platinum's all-weather approach to investing should allow the group to perform well in a variety of market environments but like most fund managers it too is leveraged to higher market levels. The fund manager's share price was also trading near recent lows prior to Monday's rally; further gains in global equity markets could help sustain the upward trajectory in its share price.
