In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fought back from a heavy selloff in morning trade but is still down a disappointing 0.7% to 5,618.7 points.
Four shares that have defied the market decline today are listed below. Here’s why they are storming higher:
The Fletcher Building Limited (ASX: FBU) share price is up 2.5% to $4.70 after the building materials company announced the sale of its Formica business to Broadview Holding BV for a sale price of US$840 million (NZ$1,226 million). Due to the sale of the Formica business and its expected return to profitability in FY 2019, the Fletcher Building board advised that it expects to reinstate its dividend when it announces its half year results in February.
The Lynas Corporation Ltd (ASX: LYC) share price has pushed 4% higher to $1.72 despite there being no news out of the rare earths producer. However, with its shares down significantly this month, some investors may believe that they have fallen into bargain territory now. Despite today’s gain, Lynas’ shares are down 18% this month due to concerns over the future of its Malaysian operations.
The Northern Star Resources Ltd (ASX: NST) share price has climbed 4% higher to $8.62. Australia’s leading gold producers have been in fine form today after the market selloff led to an increase in demand for risk-off assets. Such has been the demand that in afternoon trade the S&P/ASX All Ords Gold index is up 2.6%.
The TPG Telecom Ltd (ASX: TPM) share price has risen 3% to $6.69. Investors appear to have been taking advantage of the telco company’s sharp share price decline last week. TPG Telecom was the worst performer on the ASX 200 last week after the ACCC voiced concerns over its merger with Vodafone Australia. One positive, though, was that the heavy decline led to analysts at Goldman Sachs upgrading its shares to a neutral rating from sell with a $7.20 price target.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended TPG Telecom 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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