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Market Roundup: ASX rallies as bulls come to party

The local sharemarket enjoyed a strong start to the week in a rally led by the banks.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) up 1.4% to 5,113 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) up 1.3% to 5,145 points
  • AUD/USD at US 70.18 cents
  • Iron Ore at US$56.98 a tonne, according to the Metal Bulletin
  • Gold at US$1,145.38 an ounce
  • Brent oil at US$48.20 a barrel

Despite a shaky start, the local sharemarket soon found its footing and ended the day well on top. Although investors remain somewhat cautious to commit too much capital to stocks right now, it is also clear that many are recognising some of the reasonable buying opportunities currently on offer.

The banks led today’s rally. Commonwealth Bank of Australia (ASX: CBA) was the biggest beneficiary from the group, jumping 1.8%. Each of its rivals gained between 0.9% and 1.7%.

The miners also provided the market with a boost after falling earlier in the session. Although Rio Tinto Limited (ASX: RIO) remained in the red, losing 0.4%, BHP Billiton Limited (ASX: BHP) and South32 Ltd (ASX: S32) gained 1% and 3.9%.

M2 Group Ltd (ASX: MTU) was the top performing stock, lifting 13.4%. Vocus Communications Limited (ASX: VOC) on the other hand, was the worst performing stock. It tumbled 7.4% for the day.

Here are Monday’s top news stories:

  1. Should M2 Group shareholders celebrate the merger with Vocus Communications?
  2. Could Veda Group Ltd (ASX: VED) reject Equifax’s takeover offer?
  3. Is Metcash Limited (ASX: MTS) a target for private equity?
  4. Is Insurance Australia Group Ltd (ASX: IAG) plotting a Chinese expansion?
  5. DIVIDEND ALERT: Woolworths Limited (ASX: WOW) or National Australia Bank Ltd. (ASX: NAB)?
  6. Will Woodside Petroleum Limited (ASX: WPL) launch a share buyback?

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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.