The Australian market has rallied harder than most had anticipated as a big bounce in bank stocks offset weakness in the miners.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) jumped 0.9% to 5,881 in late morning trade with shares in Australia and New Zealand Banking Group (ASX: ANZ) leading financials higher with its best intra-day jump in two years of 3.8% to $34.50, after it posted an interim profit that was just ahead of expectations.
The jump was really more to do with a relief rally than anything else as investors were bracing for the worst following Westpac Banking Corp's (ASX: WBC) earnings disappointment yesterday.
However, it was not ANZ topping the ASX-200 leaderboard during lunch time trade. That crown belongs to theme park and leisure facilities operator Ardent Leisure Group (ASX: AAD), with the stock surging 12.3% to $2.23 following a pleasing quarterly update.
Interestingly, Ardent Leisure's bounce is also nothing short of a relief rally as investors fretted over its underperforming fitness centre division and an untested new chief executive.
Those fears were swept aside today as Ardent said its turnaround strategy for its fitness centre is starting to pay off while its US-based entertainment centres Main Event are recording stellar growth for the three months to end March.
Second on the leaderboard is Domino's Pizza Enterprises Ltd. (ASX: DMP) with the stock up 7.4% to a record high of $40.77.
The pizza franchise is an investment that just keeps giving and demand for the stock isn't affected by its seemingly high valuation.
The fact is any stock that is well placed to grow earnings in this uncertain market will find favour with investors. It also helps that Morgan Stanley has upped its fair value estimate on the stock to $50.
Age care facilities operator Estia Health Ltd (ASX: EHE) is also among the top five performers on the top 200 stock index with its shares jumping 5.1%.
The advance also puts the stock at a record high of $6.34 since it listed in late 2014.
News that it has acquired four new facilities in Queensland and New South Wales triggered today's rally as the market is betting that Estia will be to aged care what G8 Education Ltd (ASX: GEM) is to child care. G8 has delivered stellar growth from aggressively acquiring smaller child care centres.
Other aged care stocks are also finding support today. This includes Regis Healthcare Ltd (ASX: REG) and Japara Healthcare Ltd (ASX: JHC).
I have a positive view on aged care operators and I don't think next week's federal budget will hold any nasty surprises for the sector.
On the flipside, TPG Telecom Ltd (ASX: TPM) is the second worst performer on the ASX 200 with the stock tumbling 3.5% to $8.63. The company has until 5pm to offer a counterbid for iiNet Limited (ASX: IIN). Shares in iiNet are up 0.6% at $10.03.
I suspect TPG's management will be working through lunch.