The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has surged more than 0.9% today thanks to the news that OPEC has struck a new deal to modestly cut oil production.
Unsurprisingly, the energy sector is leading the market higher, unlike the healthcare sector, which is the only sector to trade in negative territory today.
Four shares that have benefited from investor optimism today, include:
Origin Energy Ltd (ASX: ORG)
Origin is the best performing large cap energy stock today with a gain of nearly 9%. The overnight bounce in the crude oil price is clearly having an immediate impact on the sector, although today's strong gains might also suggest investors believe this new deal may help to drive oil prices higher over the long term. Despite this, the agreed production cuts are unlikely to have a large impact on the demand-supply dynamics of the oil market and this means investors could be in for more volatility.
Mantra Group Ltd (ASX: MTR)
Mantra shares have climbed more than 4.8% today, despite the absence of any news from the company. The shares have been volatile over the past few weeks and today's price action suggests investors are still trying to determine a fair value for the stock. Neverthless, Mantra looks well placed to benefit from Australia's tourism boom and appears to be finding a good level of support just above the $3 level.
Cover-More Group Ltd (ASX: CVO)
Cover-More shares have surged more than 5% today after resuming trade following a three-day trading halt. Earlier in the week, the travel insurance company announced the $138 million acquisition of Travelex Insurance Services in an attempt to broaden its reach in North America. Along with the new acquisition, investors are probably also cheering the fact that trading for the first two months of the new financial year has been in line with expectations. As a result, Cover-More expects to deliver full year EBITDA consistent with market consensus, which is in the range of $48.1 million to $52.9 million.
OFX Group Ltd (ASX: OFX)
After a month of relentless selling pressure, OFX Group has finally enjoyed a day of strong gains with the shares surging 5.3% today. Although the shares have still managed to shed around 25% of their value since the start of September, shareholders will now hope the worst is over for the money transfer company. Interestingly, there has been no obvious catalyst for the recent share price collapse and the company's latest update in early August was well received by the market. Nevertheless, investors should expect the high levels of volatility to continue as the market tries to determine a fair value for the shares.
