The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has surged higher today in a rally fuelled by the energy sector, taking investors' minds away from China temporarily.
Although the oil price actually fell 4% overnight, the sector is jumping following the announcement that Woodside Petroleum Limited (ASX: WPL) has entered a bid to buy Oil Search Limited (ASX: OSH).
While some analysts are still bearish on the commodity itself – suggesting it could have much further to fall before bottoming out – the announcement has clearly created a sense of confidence amongst investors that now is a good time to buy. Indeed, although Woodside lost 3% following the announcement, Oil Search soared 16.6% higher with Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG) also rising 8.4% and 3.6%, respectively.
Elsewhere, Australia's big four banks are also back in the market's favour following their heavy sell-down recently. Australia and New Zealand Banking Group (ASX: ANZ) has been the strongest performer, up 1.7%, while Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB) are up between 0.6% and 1.3%.
Is now the time to buy shares?
The recent market crash has been painful – there's no denying that. After all, no one likes watching the value of their portfolios fall.
However, although there is no way of knowing whether the market has bottomed out yet, or if there is still a way to go before the recovery starts, it is clear that a number of attractive opportunities have begun to present themselves. As an example, Veda Group Ltd (ASX: VED) could be a good company to look at right now, as is Collection House Limited (ASX: CLH).
Investors who ignore all the noise and focus on the strength of underlying businesses will be able to control their emotions better and may even pick up a bargain or two along the way.
