The S&P/ ASX200 (ASX: XJO) is up 0.3% in morning trade to 5,567 points after a 2.25% fall yesterday as investors continue to worry about geopolitical issues such as Brexit, the US China trade war, and yesterday's weaker-than-expected Chinese trade data.
However, there are some popular companies on the local market flying higher today. So let's take a look at why they're catching a bid.
The TPG Telecom Ltd (ASX: TPM) share price is up 8% to $7.96 this morning despite the mobile and internet services business releasing no specific news to the market. Yesterday, TPG announced it had bought multiple lots of 5G next-generation mobile spectrum for $263.3 million in a joint bid with Vodafone Australia. The competition regulator the ACCC is also due to deliver its verdict on TPG's proposed merger with Vodafone on December 13. Investors may be bidding up the shares in anticipation of the ACCC approving the merger.
The Bellamy's Australia Ltd (ASX: BAL) share price is 2.2% higher to $7.51 as the organic infant formula business continues to divide the bulls, bears and brokers as to its outlook. As at December 4 Bellamy's had more than 8% of its outstanding shares shorted perhaps on concerns over the potential for Chinese sales to slow, however, if it updates the market with some positive news on regulatory approval in China the short sellers might collect some steep losses.
The Computershare Limited (ASX: CPU) share price is up 2.7% to $17.21 as investors buy into the share registry business that has a very impressive long-term track record. For example its dividend payouts have grown from 28 cents per share in FY 2013 to 40 cents per share in FY 2018. It's also forecasting earnings per share growth of 10%+ on a constant currency basis in FY 2019.
The CSL Limited (ASX: CSL) share price is up 1.5% to $179.25 as investors buy a business with leverage to a weaker Australian dollar and the long-term tailwinds of the healthcare sector. Recently, CSL updated the market on its research and development projects including CSL 112, with it due to hand in its interim financial results in February investors will be keen to see how it is tracking to guidance for profit growth between 10%-14% in FY 2019.
