Australian litigation company Shine Corporate Ltd (ASX: SHJ) has surged to a record high today. By mid-afternoon trade the stock was at $3.35 after having risen a healthy 9.1%.
So What: While the company has not released any news which would specifically explain the sudden jump, it's very possible that the buying activity could be related to the stock's inclusion into the S&P/ASX 300 Index.
Although the changes to the indices will not take effect until 20 March 2015, it's possible investors are buying the shares in anticipation. After all, those companies included in the index will be subject to greater analyst coverage and can be purchased by a wider group of fund managers.
Other stocks to have been elevated into the index, include NIB Holdings Limited (ASX: NHF), oOh!Media Ltd (ASX: OML), Nanosonics Ltd. (ASX: NAN) and FAR Ltd (ASX: FAR). All have also risen strongly since the list of rebalances was released.
Now What: Although Shine Corporate is now trading at a record high price, it still presents as a reasonable option for investors chasing growth. While the company is expanding geographically across Australia, it is also venturing into new practice areas which could also drive growth in the years ahead.
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