The S&P/ASX 200 index was out of form again last week after coronavirus concerns escalated. This led to the benchmark index falling 3.5% to end the week at 6216.2 points.
Not all shares on the index tumbled lower last week, though. Here’s why these were the best performers on the ASX 200 over the period:
The Chorus Ltd (ASX: CNU) share price was the best performer on the ASX 200 last week with a 15.2% gain. The New Zealand based telco company’s shares have been pushing higher since the release of its half year results last month. Although Chorus delivered a small decline in first half revenue to NZ$483 million, its EBITDA rose by a solid 4.4% to NZ$332 million. Looking ahead, thanks to its progress on business optimisation and its positive broadband connection performance, management upgraded its FY 2020 EBITDA guidance. It now expects EBITDA to be in the range of NZ$640 million to NZ$655 million, up from its prior range of NZ$625 million to NZ$645 million.
The Elders Ltd (ASX: ELD) share price wasn’t far behind with a gain of 13.8%. Although there has been no news out of the agribusiness company since January, it looks as though improving weather conditions are supporting its shares. Elders had faced tough trading conditions due to the drought and bushfires. In addition to this, on Wednesday the company revealed that investment company Perpetual Limited (ASX: PPT) has been increasing its stake. It has recently bought almost 2 million shares, which boosted its stake from 9.49% to 10.69%.
The Saracen Mineral Holdings Limited (ASX: SAR) share price was also up 13.8% last week. Investors were buying Saracen and the rest of the gold miners after global markets were sold off. This market volatility led to increasing demand for safe haven assets like gold and treasury bonds. The Saracen share price is now up an impressive 30% since the start of the year and 68% over the last 12 months.
The TPG Telecom Ltd (ASX: TPM) share price was on form last week and recorded a 10.9% gain. Investors were buying the telco company’s shares after the release of its half year result. It posted a 1% increase in revenue to $1,246.5 million and a 6% decline in underlying EBITDA to $399.1 million. This stronger than expected first half performance led to management upgrading its full year BAU EBITDA guidance to be in the range of $775 million to $785 million. This compares to its previous guidance of $735 million to $750 million. Also boosting the TPG Telecom share price was news that the ACCC will not appeal the Federal Court’s decision to approve the merger between it and Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA).
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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 recommended Elders 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.