A strong finish saw the S&P/ASX 200 index bounce back from a selloff a week earlier to record a solid gain last week. The benchmark index ended it 1.4% higher than where it started at 6606.8 points.
Whilst the majority of shares on the index pushed higher, some climbed more than most. Here's why these were the best performers on the S&P/ASX 200 index last week:
The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price was the best performer on the S&P/ASX 200 index with a gain of 41.4%. Investors were scrambling to buy the biopharmaceutical company's shares last week when it provided an update on its SCENESSE product. According to the release, the U.S. FDA has approved the product for the treatment of Erythropoietic protoporphyria (EPP) in adults in the United States. As no other product has approval in the country, this is expected to be a major boost to its sales in 2020.
The Polynovo Ltd (ASX: PNV) share price was some way behind as the next best performer with an 18% gain. Its shares raced higher last week despite there being no news out of the medical device company. However, I suspect increasing investor interest in the biotech and healthcare sectors following Clinuvel's success may have been the driver of this gain.
The Silver Lake Resources Limited (ASX: SLR) share price was on form last week and recorded an 11.9% gain. Investors were buying the gold miner's shares after it released a strong first quarter update. During the quarter Silver Lake produced 61,929 ounces of gold equivalent at an all-in sustaining cost of A$1,260 per ounce. In addition to this, the miner revealed that it sold 56,683 ounces of gold and 613 tonnes of copper during the quarter for an average price of A$1,995 per ounce. This means the company is on course to achieve the high end of its sales guidance in FY 2020.
The Orora Ltd (ASX: ORA) share price raced 9.3% higher last week. The packaging company's shares stormed higher after it announced plans to sell its Australasian Fibre Business to Nippon Paper Industries for ~$1.7 billion. Management advised that the majority of the proceeds of the sale (~$1.2 billion) will be returned to shareholders through capital management initiatives. This appears likely to be a combination of share buybacks and dividends.
