Today, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) powered 0.7% higher on the back of strong leads from U.S. and European markets on Friday, as well as strong movements in key commodity prices.
The S&P/ASX 300 Metal & Mining Index (Index: ^AXMM) (ASX: XMM) was the strongest performing index, up over 1.9% for the day, whilst the S&P/ASX 200 Info Tech Index (Index: ^AXIJ) (ASX: XIJ) fared the worst, falling 0.4%.
The market was moved by a number of strongly performing stocks.
BC Iron Limited (ASX: BCI) and Fortescue Metals Group Limited (ASX: FMG) jumped an impressive 26% and 15%, respectively, as iron ore prices continued to rebound. Flying US$2.99, or 5.5% higher to $US57.81 per tonne according to the Metal Bulletin Ltd, the steel making ingredient has jumped a whopping 24% since earlier in the month. However, despite their share prices soaring more than 89% and 31%, respectively, in the last five trading days investors should exercise caution before hitting the buy button. Indeed, the overwhelming consensus is for iron ore prices to continue falling as the supply/demand imbalance worsens in coming years.
Both Sirius Resources N.L. (ASX: SIR) and Western Areas Ltd (ASX: WSA) also benefitted from robust commodity prices, climbing 9.5% and 6.6%, respectively. Over the past year, favourable nickel prices have allowed a number of Australian producers to drive margin expansion in the wake of Indonesia's decision to impose an export ban.
iiNet Limited (ASX: IIN) led gains in the telecommunications space, climbing 12.6% on the back of a scrip takeover offer from rival M2 Group Ltd (ASX: MTU). The $1.5 billion bid from M2 Group – owner of Dodo, Eftel and Primus telco brands – comes after TPG Telecom Ltd's (ASX: TPM) $1.4 billion offer in March. With today's gains included, iiNet Limited shares are now up 23% for the year.
Finally embattled free-to-air television broadcaster, Ten Network Holdings Limited (ASX: TEN), soared as much as 5% today, before settling 2.4% higher on the back of news that it is in talks with pay-tv operator Foxtel for a potential investment. At just $0.21, Ten Network shares have continued to plummet as competition and the rise of internet-based services took their tolls on advertising revenues and profits in recent years.
