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Why CYBG, GBST, Perpetual, & Zip Co shares stormed higher today

Thanks partly to strong gains in the banking sector, the S&P/ASX 200 Index is on course to finish the week on a positive note. In afternoon trade the benchmark index is up 0.7% to 6,242.2 points.

Four shares climbing more than most today are listed below. Here’s why they are ending the week with a bang:

The CYBG PLC (ASX: CYB) share price has climbed 5.5% to $3.88. This morning the UK-based bank’s shares were given a boost when European Union leaders granted the UK a six-month extension to Brexit. According to the BBC, the UK has been granted a new deadline of October 31, removing the danger of the UK having to leave the EU without a deal on Friday.

The GBST Holdings Limited (ASX: GBT) share price has rocketed 22% higher to $2.42 after Bravura Solutions Ltd (ASX: BVS) announced that it has made a $2.50 takeover bid. Bravura believes that its indicative proposal provides a number of benefits to its shareholders including an attractive premium, certain value, and reduced uncertainty. GBST has not yet responded to the offer, but the market appears confident in a deal being made judging by the share price reaction.

The Perpetual Limited (ASX: PPT) share price has pushed 5% higher to $42.63 after the fund manager released its latest funds under management update. Although Perpetual recorded $1.9 billion of fund outflows during the March quarter, funds under management only decreased by $300 million thanks to strong gains by equities. Investors may have been expecting even worse from Perpetual.

The Zip Co Ltd (ASX: Z1P) share price has jumped 9% to $2.34 despite there being no news out of the buy now pay later company. At one point today the Zip Co share price was 12% higher at an all-time high of $2.41. When its shares reached this level it meant they had gained a remarkable 119% since the start of the year.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd and GBST Holdings Limited. 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 Scott Phillips.

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