Last week the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finished the week marginally higher after a broad market selloff on Friday wiped out the gains that had been made during the first four trading days.
A number of shares performed significantly better during the period. These four shares were the best performers on the ASX 200 last week. Here's why:
The Bellamy's Australia Ltd (ASX: BAL) share price was the best performer on the ASX 200 last week with a gain of 17%. The infant formula and baby food company's shares surged higher despite there being no news out of it. I suspect that some investors believe that Bellamy's is close to being granted the SAMR accreditation which is required to sell its products in mainland China and have been snapping up shares in anticipation of an announcement. Last month Bellamy's advised that its China-based marketing strategy is ready to be launched the moment its accreditation is received.
The Fortescue Metals Group Limited (ASX: FMG) share price zoomed 9% higher last week. A small rise in the iron ore price is likely to have boosted investor sentiment last week. In addition to this, the company was the subject of a positive broker note out of Ord Minnett. According to the note, its analysts retained their buy rating and $7.30 price target on the iron ore producer's shares on the belief that it will be generating significant free cash flow over the next 18 months. The broker has pointed to the narrowing discount for its produce as another reason to positive.
The JB Hi-Fi Limited (ASX: JBH) share price rose 7.5% last week despite the release of disappointing retail sales data for the month of January. JB Hi-Fi's shares had fallen heavily during the previous two weeks, possibly due to concerns over the poor performance of Harvey Norman Holdings Limited (ASX: HVN) in the ANZ market so far in the second half of FY 2019. Some investors may have felt the selling of JB Hi-Fi's shares was overdone and bought the dip last week.
The Super Retail Group Ltd (ASX: SUL) share price wasn't far behind with a gain of 6% last week. With no news out of the company or broker notes that I'm aware of, I suspect that bargain hunters may have been snapping up the retailer's shares last week. After all, they are trading at just over 10.5x trailing earnings and offer an above-average 6.3% dividend yield. This is despite the fact that the company delivered a strong first half result and revealed that like for like sales are up a solid 4% so far in the second half.
