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Why Fletcher Building, Metcash, Myer, & Newcrest shares raced higher today

In afternoon trade the S&P/ASX 200 index is on course to record a disappointing decline. At the time of writing the benchmark index is down 0.6% to 6,533.4 points.

Four shares that have not let that hold them back are listed below. Here’s why they have raced higher today:

The Fletcher Building Limited (ASX: FBU) share price is up almost 2% to $4.31 after announcing the details of its share buyback. According to the release, the building products company will commence its NZ$300 million buyback next week. These shares will be bought back periodically over the next 12 months and then cancelled upon acquisition. This is expected to reduce the number of shares on issue by upwards of 70 million.

The Metcash Limited (ASX: MTS) share price has raced 3.5% higher to $2.93. Investors have been buying the wholesale distribution and marketing company’s shares after Goldman Sachs upgraded them to a buy rating with a $3.07 price target. According to the note, the broker made the move largely on evidence of improved sales momentum in the Food segment and positive channel check feedback on its execution.

The Myer Holdings Ltd (ASX: MYR) share price has zoomed 8% higher to 58.3 cents after being the subject of a positive broker note out of Ord Minnett. According to the note, the broker has upgraded Myer’s shares to an accumulate rating and lifted the price target on them materially to 70 cents. It expects Myer to deliver a solid full year result this week.

The Newcrest Mining Limited (ASX: NCM) share price is up 3% to $38.11 thanks to a strong rise in the gold price overnight. Weak economic data in the U.S. has once again sparked fears of an impending recession and sent investors to safe haven assets such as gold. It isn’t just Newcrest on the rise today. At the time of writing the S&P/ASX All Ords Gold index is up a solid 2.4%.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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