It has been another disappointing day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is down 1.1% to 5,611.4 points.
Four shares that have defied the market selloff and climbed higher today are listed below. Here’s why they are on the rise:
The Carsales.Com Ltd (ASX: CAR) share price has climbed 3% higher to $11.57. Today’s gain appears to be attributable to a broker note out of Ord Minnett this morning. According to the note, the broker has upgraded Carsales.com’s shares to a buy rating with a $14.84 price target. Its analysts believe that the car listing company’s core business remains strong and its long-term international opportunity is significant.
The Reject Shop Ltd (ASX: TRS) share price has surged 14.5% higher to $2.78 after the discount retailer received a takeover approach from a company controlled by the Kin Group. An unconditional on-market takeover offer of $2.70 cash per share has been made. This represents a ~19% premium to Reject Shop’s 1-month VWAP of $2.271. It is worth noting that just six months ago the retailer’s shares were priced at $6.56.
The Sonic Healthcare Limited (ASX: SHL) share price has pushed 2.5% higher to $22.14 despite there being no news out of the healthcare company. The healthcare sector is the only area of the market in positive territory right now. Investors appear to have rotated to the sector today to escape the market selloff.
The Trade Me Group Ltd (ASX: TME) share price has stormed 17% higher to $5.60. Investors have been fighting to get hold of the New Zealand-based online auction and classifieds company’s shares after it received a takeover approach. According to the release, Trade Me has received a preliminary, non binding, indicative proposal from Apax Partners to acquire it for a cash price of NZ$6.40 (A$6.02) per share.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited and The Reject Shop 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.