The All Ordinaries index may be down heavily this year because of the coronavirus pandemic, but not all shares have crashed lower.
A handful of shares have been posting very strong gains in 2020 despite the ASX falling into a bear market.
Here’s why these All Ords shares have zoomed higher:
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
The Fisher & Paykel Healthcare share price has been the best performer on the All Ords this year with a sizeable 28% gain. The catalyst for this strong share price gain was an announcement which revealed that the healthcare company has been benefiting from the coronavirus outbreak. Fisher & Paykel Healthcare advised that it has been experiencing stronger than expected demand for its Homecare and Hospital products in China because of the coronavirus. This led to the company upgrading its guidance for FY 2019 for a second time.
Metcash Limited (ASX: MTS)
The Metcash share price has been a very strong performer this year and is up an impressive 26.5%. Investors have been buying Metcash and supermarket shares due to the belief that they are benefiting greatly from the coronavirus-related panic buying sweeping Australia. Metcash is a wholesaler and distributor to independent supermarkets across the country.
Sigma Healthcare Ltd (ASX: SIG)
The Sigma share price has zoomed almost 21% higher since the turn of the year. The majority of this gain was generated this week after the release of a positive update by the pharmacy chain operator and distributor. That update revealed that its first-line agreement for the supply of all pharmaceutical and over the counter products with the Pharmacy Alliance (PAL) Group has been renewed for a further five years. Management estimates that the contract is worth a massive $500 million per annum in revenue over the five years.
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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 no position in any of the stocks mentioned. 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.