The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has defied a weak international lead today, soaring more than 1.2% to 5,105 points.
Leading into today, investors were expected to remain somewhat hesitant in light of ongoing concerns about global growth, together with uncertainty regarding US monetary policy. Instead, there has been a flurry of buying in the wake of Vocus Communications Limited's (ASX: VOC) and M2 Group Ltd's (ASX: MTU) plan to join forces.
Although Vocus' shares have slipped 6.6% on the announcement, M2 Group has surged 14% higher, making it the best performing stock from the ASX 200 group. Earlier, it was up as much as 24.3% with Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPM) also rising 1.1% and 0.9% respectively.
There was also plenty of optimism surrounding the Big Four banks. Commonwealth Bank of Australia (ASX: CBA) rose an impressive 2.2% while Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) rose 1.7%, 1.8% and 1.6%, respectively.
Although the recent bout of volatility is expected to continue over the coming weeks, and maybe even months, investors should take confidence away from days like today. The strong gains signify that some investors truly are recognising some of the bargains on offer, and moving to take advantage of the lower prices.
