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.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.