The S&P/ASX 200 index came under pressure last week and ended its winning streak. The benchmark index tumbled 1% to end it at 7017.2 points.
Not all shares dropped lower last week, though. Here’s why these shares were the best performers on the S&P/ASX 200 index:
The Link Administration Holdings Ltd (ASX: LNK) share price was the best performer on the index with an 8.3% gain. All of this gain on the final day of the week after it announced the acquisition of Pepper European Servicing for an upfront cash payment of €165 million (~A$266 million). The deal includes a contingent cash payment of up to €35 million (~A$56 million). Management expects the transaction to be double digit accretive to earnings, with a further 5% to 6% accretion anticipated from efficiency benefits over the medium term.
The Credit Corp Group Limited (ASX: CCP) share price wasn’t far behind with a gain of 7.4%. Investors were buying the debt collector’s shares after the release of a solid half year result. For the six months ended December 31, Credit Corp reported a 13% increase in its consumer loan book to $230 million. And thanks to a very strong performance by its U.S. business and profit growth across all other segments, the company reported a 15% increase in first half net profit after tax to $38.6 million.
The ResMed Inc. (ASX: RMD) share price was on form again and recorded a solid gain of 6.1% last week. The catalyst for this was the release of its second quarter update on Friday. During the second quarter the sleep treatment specialist delivered revenue growth of 13% to US$736.2 million. And thanks to the expansion of its margins, ResMed’s net operating profit increased at the even quicker rate of 26% to US$197.8 million.
The TPG Telecom Ltd (ASX: TPM) share price climbed a sizeable 5.7% last week. This was despite there being no news out of the telco company. However, later this month the Federal Court will decide whether to overturn the ACCC’s decision to block its merger with Vodafone Australia. Some investors may be expecting a positive outcome and expect it to drive its shares higher.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd and ResMed Inc. 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.