The S&P/ASX 200 index was on form last week thanks to positive trade war developments. The benchmark index climbed a sizeable 76.6 points or 1.1% to 6816.3 points.
Whilst the majority of shares on the index climbed higher, some climbed more than most. Here’s why these ASX 200 shares were the best performers on the ASX 200 last week:
Service Stream Limited (ASX: SSM)
The Service Stream share price was the best performer on the index, jumping 15.5% higher last week. Investors were buying the essential network services company’s shares after it announced that its consortium won a ten-year contract with Sydney Water Corporation. The $200 million contract will see the consortium provide Sydney Water with a TOTEX asset management service covering the design, construction, maintenance, and facility management of all treatment and network assets in its Southern Region. Service Stream has a 30% interest in the consortium’s joint venture.
Avita Medical Ltd (ASX: AVH)
The Avita Medical share price wasn’t far behind with a gain of 13% last week. This strong gain occurred despite there being no news out of the medical technology company. However, a recent pullback in its share price may have been seen as a buying opportunity by some investors. Avita Medical has caught the eye of investors this year due to the strong sales growth of its RECELL System. The FDA-approved RECELL System is indicated for use in the treatment of acute thermal burns in patients 18 years and older.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price was on form last week and recorded a 10.9% gain. Investors were buying the gold miner’s shares after it successfully completed a capital raising to fund a major acquisition. Northern Star has entered into a binding agreement with Newmont Goldcorp to acquire a 50% stake in the Super Pit asset for US$800 million (~A$1,168 million). It will now partner with Saracen Mineral Holdings Limited (ASX: SAR), which paid US$750 million for the other 50% interest in November. Its shares raced 9.9% higher on the news.
Chorus Ltd (ASX: CNU)
The Chorus share price was a stronger performer, recording a 9.5% gain last week. The New Zealand-based telco’s shares raced higher despite there being no news out of it or broker notes that I’m aware of. The buying was so strong that Chorus’ shares hit an all-time high during the period.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Service Stream Limited. 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.