It has been a slow start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is down almost 0.3% to 5,492 points due to heavy declines in the energy sector.
Despite the index heading lower, four shares in particular have been pushing significantly higher today. Here's why they have started the week strongly:
Broo Ltd (ASX: BEE) shares have rocketed 16.5% to 39 cents after the beer company announced a nationwide distribution deal in China. Whilst this is a promising development for the company, I don't believe its shares are investable at this stage. Its sky high valuation means an incredible amount of growth has been baked into its price already. At this stage I feel it is far too early to know whether any of that growth will ultimately materialise.
IOOF Holdings Limited (ASX: IFL) shares are up over 3.5% to $8.70 following speculation of a merger with financial services company Perpetual Limited (ASX: PPT) in the Fairfax press. Whilst on paper a merger may look attractive and could offer cost savings, it doesn't guarantee a better performance from the two strugglers.
Metcash Limited (ASX: MTS) shares are up 5.5% to $2.09 after the wholesale distributor released its half year results. Metcash generated sales revenue of $6.63 billion during the half, up 0.3% on the prior corresponding period. On the bottom line underlying profit after tax came in 4.7% lower than last year at $82.8 million. Although they don't make for great reading the results were not as bad as many had feared.
Resolute Mining Limited (ASX: RSG) shares have bounced higher by 5.5% to $1.26 after the gold price rose. The spot gold price is currently fetching US$1,194 an ounce, up 1.3% from US$1,178 an ounce on Friday. With the Federal Reserve expected to raise interest rates in the United States in just over two weeks, I wouldn't expect the gold price to stick around at these levels for much longer.
