The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has staged a relief rally, closing the day up more than 2% and finishing above the 5,000 mark at 5,021.6. Most sectors finished the day in the green, with financials, metals & mining and telecommunication services the biggest risers.
Piggybacking on the market’s rise, these four companies saw their share prices surge…
TPG Telecom Ltd’s (ASX: TPM) share price jumped 7.1% to $10.86, after signing two deals with Vodafone. TPG will provide dark fibre and network services to 3,000 Vodafone Australia sites, while TPG’s mobile phone customers will move onto the Vodafone network from Optus. TPG is expected to generate in excess of $900 million over the 15-year contract.
Fortescue Metals Group Limited (ASX: FMG) share price gained 9% to $1.82. The iron ore miner was heavily sold off yesterday along with virtually every other resource stock, but fears have abated somewhat, with many recovering today as bargain hunters swooped. That was despite the iron ore price falling 1.4% to US$56.05 a tonne overnight. Citi is forecasting prices to remain around US$50 per tonne over the next few months.
M2 Group Ltd (ASX: MTU) saw its share price rise 7.5% to $9.49. M2 received a friendly merger offer from Vocus Communications Limited (ASX: VOC) where M2 shareholders will receive 1.625 Vocus shares for each M2 share they hold. At the current Vocus share price of $5.88, M2 shares are roughly worth $9.55 each.
Coal miner New Hope Corporation Limited (ASX: NHC) share price gained 7% to $1.765 after the company acquired a 40% interest in the Bengalla thermal coal mine for $865 million from a subsidiary of Rio Tinto Limited (ASX: RIO). Bengalla has a 25 year permitted mine life and could increase production to 12 million tonnes per annum.
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Motley Fool contributor Mike King owns shares in TPG Telecom, M2 Group and Vocus Communications. You can follow Mike on Twitter @TMFKinga
Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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.