In afternoon trade the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to make it two days of gains in a row and is up almost 1% to 5,781 points.
Four shares which have made notably strong gains today are listed below. Here's why they have surged higher:
The Fortescue Metals Group Limited (ASX: FMG) share price is up almost 5% to $5.30 thanks to another lift in the iron ore price. The spot price of the benchmark 62% fines has now risen approximately 30% since the middle of June. I think that if prices remain favourable the low cost iron ore producer could be a great option in the resources sector.
The Nextdc Ltd (ASX: NXT) share price has climbed 3.5% to $4.19 after the data-centre-as-a-service company offered to acquire all the shares it doesn't already own in Asia Pacific Data Centre Group (ASX: AJD) for $1.85 per share. NextDC is a long-term tenant in the three data centre properties owned by the REIT.
The OZ Minerals Limited (ASX: OZL) share price has jumped 9% to $8.03 a day after the copper and gold miner released a positive quarterly update. As well as production and costs being on course to hit full-year guidance, a rise in the copper price to a two-year high also gave its shares a lift. Whilst this gain is undoubtedly strong, one leading broker thinks its shares could still climb as high as $10.
The Sigma Healthcare Ltd (ASX: SIG) share price is up 8% to 93.2 cents. This morning the pharmacy wholesaler and distributor advised that it has discontinued legal proceedings against major customer My Chemist/Chemist Warehouse Group. The two parties have instead commenced a formal negotiation period to seek a commercial resolution to their dispute. As promising as this is, I'm still not a buyer of its shares due to concerns over the impact this may have on its future earnings.
