After a pretty lacklustre start to the day, the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has managed to stage a solid turnaround and is now trading 0.24% higher to 5,340 points.
The telecommunications, property and utilities sectors are doing most of the heavy lifting today, with weak performances coming from the energy, resources and financials sectors.
Four shares that are enjoying a particularly strong day, include:
OFX Group Ltd (ASX: OFX)
OFX shares are enjoying their second-straight day of positive gains, rising another 5.5% to $1.53. The company made news earlier in the week with a weaker-than-expected first half result, although it appears some investors are looking past this on the expectation of an improved second half. Nevertheless, it remains far too early to judge whether OFX will meet the market's revised expectations and owning the shares remains a high-risk proposition in my opinion.
Capitol Health Ltd (ASX: CAJ)
Shares of Capitol Health have rebounded 10% today, rising 1 cent to 11 cents per share. The diagnostic imaging company released another disappointing market update yesterday that showed operating revenue for the first four months falling 4% below company expectations. One positive point from the update was that industry-wide Medicare services growth looks as though it may be recovering back to its long term rate of 7% and this is perhaps what investors are pinning their hopes on today. Nonetheless, Capitol Health faces a number of headwinds including the challenge of restructuring its fragile balance sheet.
Telstra Corporation Ltd (ASX: TLS)
Telstra has been one of the biggest contributors to today's broader market turnaround with a gain of 2.3% to $4.83. It comes after the telco giant flagged plans to cut fixed costs by over $1 billion over the next five years at its annual investor day. Telstra also re-affirmed its full year FY17 guidance for mid-to-high-single digit growth in income and low-to-mid-single digit EBITDA growth. Despite today's rally, the shares are still trading around 14% lower for the year-to-date.
Mineral Resources Limited (ASX: MIN)
Shares of Mineral Resources have climbed more than 4.4% today after the company provided an upbeat outlook at its AGM. The miner and mining services company has enjoyed positive conditions for the first three months of the new financial year and this has allowed the company to increase its FY17 EBITDA guidance from between $360 million – $400 million to between $380 million – $420 million. If the higher end of the range is achieved it would represent a 47% increase from the $286 million result in FY16. Interestingly, the shares have now exploded more than 204% over the past 12 months.
