The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has retreated marginally today despite a strong rise in international equity markets and iron ore prices overnight.
It's possible that investors are still reassessing the possibility of a May interest rate cut after inflation data was released yesterday. However a number of stocks have managed to buck the downward trend, generating some big gains for the day.
BC Iron Limited (ASX: BCI) has risen a remarkable 40.4% to be trading at 36.5 cents, while Fortescue Metals Group Limited (ASX: FMG) has risen 10.8% to $2.11.
Both companies are benefiting from the 5.9% jump in the iron ore price overnight and have each released market sensitive announcements to please investors.
In its quarterly activities report this morning, BC Iron reconfirmed its strong cash position (cash of $107.5 million, compared to $46.9 million of debt), while costs also improved over the period.
Meanwhile, Fortescue Metals Group managed to raise US$2.3 billion from a bond issue which will allow it to repay its 2017 and 2018 Senior Unsecured notes in entirety, buying itself some breathing room for now.
The gains from the soaring iron ore price have also spilled into the mining services sector with Monadelphous Group Limited (ASX: MND) recording a gain of 4.8%.
Investors are speculating that higher iron ore prices could result in greater investment in projects, which could require the services of companies such as Monadelphous. Unfortunately, that's all it is for now: speculation.
Nufarm Limited (ASX: NUF) has risen 4.9% to be trading at $6.80 after it reported its half-year earnings results. The global crop protection company reported a 41% lift in underlying net profit, driven by earnings growth in all major crop protection regions, while it also increased its interim dividend by 33%.
Sirtex Medical Limited (ASX: SRX) has regained 3.4% after falling by a similar amount on Wednesday. The biotech stock has taken investors on a wild ride since it delivered a disappointing result for its SIRFLOX study just over a month ago, with investors attempting to assess the company's future growth potential. Investors looking build a position may want to hold off until it releases the final results for the study late next month.
