Trade war tensions weighed on the Australian share market late in the week, leading to the S&P/ASX 200 index posting a disappointing 0.5% or 32-points decline last week.
Not all shares followed the index lower, though. Here’s why these shares stormed higher and were the best-performing shares on the benchmark index over the period:
The Pact Group Holdings Ltd (ASX: PGH) share price was the best-performer on the benchmark index last week with a gain of 18.2%. Investors were fighting to get hold of the packaging company’s shares after it announced the refinancing of its debt. This agreement means its near-term refinancing risk has now been removed. It also confirmed that it is on track to achieve its guidance in FY 2019. The former was seen as a big positive by analysts at Goldman Sachs who decided to upgrade its shares from neutral to a buy rating with a $3.02 price target.
The Ausdrill Limited (ASX: ASL) share price wasn’t far behind with a strong 15.9% gain. The diversified mining services company’s shares charged higher after it announced that its Barminco business has been awarded a five-year underground mining services contract at the Zone 5 Mine in Botswana worth approximately A$800 million. The massive contract is expected to commence in December 2019.
The Resolute Mining Limited (ASX: RSG) share price was a strong performer again last week with a gain of 10.3%. News that its Syama advanced underground gold mine project in Mali has hit commercial production rates managed to offset weakness in the gold price at the end of the week. This led to analysts at Citi retaining their buy rating and lifting the price target on the gold miner’s shares to $2.05.
The Eclipx Group Ltd (ASX: ECX) share price was on form again last week with a gain of 8.7%. The fleet management company’s shares have been recovering strongly in recent weeks after falling heavily in March after the sudden deterioration in business conditions and the collapse of its merger with McMillan Shakespeare Limited (ASX: MMS). Eclipx’s shares are now up 142% since hitting a 52-week low of 54 cents. However, they are still down 59% from their 52-week high.
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Returns as of 6th October 2020
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.