Although it finished it on a subdued note, the S&P/ASX 200 index has just completed an impressive month thanks to sliding interest rates and record low bond yields. Over the period the benchmark index rose 193.8 points or 2.9%.
A number of shares on the index performed even better over the month. Here's why these shares were the best-performers on the ASX 200 in July:
The Resolute Mining Limited (ASX: RSG) share price was the best performer on the ASX 200 in July with a gain of 35.5%. The gold miner's shares charged higher thanks to a strong rise in the gold price due to the weakening outlook for interest rates globally. Also rising strongly for similar reasons was the St Barbara Ltd (ASX: SBM) share price with a gain of almost 24%.
The A2 Milk Company Ltd (ASX: A2M) share price wasn't far behind with a gain of 23.5% over the month. The catalyst for this was a series of favourable broker notes that were released during the month. One of the most bullish brokers was Goldman Sachs which added the company to its conviction buy list with a price target of $17.40.
The Eclipx Group Ltd (ASX: ECX) share price was a strong performer last month with a gain of just over 20%. The driver of this was news that the fleet management company had agreed to sell its GraysOnline and AreYouSelling businesses to Quadrant Private Equity for $60 million. The transaction also includes a distribution arrangement which allows Eclipx to continue to benefit from the utilisation of Grays Auto as one of its channels for the disposal of end of lease vehicles.
The Bellamy's Australia Ltd (ASX: BAL) share price returned to form in July with a gain of 18.9% despite there being no news out of the infant formula and baby food company. However, with reports of daigou buyers scrambling to buy ANZ infant formula products and small cap rival Bubs Australia Ltd (ASX: BUB) reporting strong sales growth, some investors may believe things are going well for Bellamy's.
