A strong finish to the week led to the S&P/ASX 200 index bouncing back from a mini meltdown on Tuesday to record a weekly gain of 0.9%.
Whilst this was a strong gain, it paled in comparison to some of the gains that were made on the index. The best performers last week were as follows:
The Fortescue Metals Group Limited (ASX: FMG) share price was the best performer on the ASX 200 last week with a gain of 18.8%. There were two catalysts for this strong share price gain. The first was Chinese iron ore futures hitting a record high due to robust demand for the steelmaking ingredient amid tightening supply. The second was the company's surprise decision to declare a fully franked dividend of 60 cents per share. Even after its stellar gain, this single dividend equates to a 6.7% dividend yield. Fortescue's shares will trade ex-dividend on May 22.
The NRW Holdings Limited (ASX: NWH) share price wasn't far behind after zooming 17.8% higher last week. Investors were buying its shares after the company revealed that it has been awarded the Koodaideri Rail Formation South Earthworks contract by Rio Tinto Limited (ASX: RIO). The project includes the construction of approximately 73 kms of new rail embankment, a new mine access road, and associated road works along the Koodaideri rail alignment. Management estimates the project value to be in excess of $137 million.
The Lendlease Group (ASX: LLC) share price rose 11.5% last week amid speculation that the international property and infrastructure group was a takeover target of a big Japanese company. Japanese giant Mitsui is believed to be interested in buying the company and then breaking it up. Although the company denied that it is a takeover target, its shares didn't give back their gains.
The Xero Limited (ASX: XRO) share price was a big mover last week with a gain of 11.2%. The catalyst for this was the release of the business and accounting software company's full year results. In FY 2019 Xero posted an impressive 36% increase in operating revenue to $552.8 million and a 32% lift in Annualised Monthly Recurring Revenue (AMRR) to $638.2 million. This was driven by a 31% jump in total subscribers to 1.818 million and a modest rise in average revenue per user.
