Last week the S&P/ASX 200 Index (ASX: XJO) was out of form again. Concerns over the coronavirus outbreak led to the benchmark index falling a disappointing 722.7 points or 13.1% lower to 4,816.6 points.
Not all shares tumbled lower last week, though. Here’s why these ASX 200 shares were the best performers on the index:
The Metcash Limited (ASX: MTS) share price was the best performer on the index last week with a gain of 30.5%. Investors were buying the wholesaler and distributor’s shares last week on the belief that it is benefiting from the coronavirus related panic buying which has been sweeping Australia. Its shares were also given a boost from a broker note out of UBS. It upgraded its shares to a buy rating with a $2.90 price target.
The NIB Holdings Limited (ASX: NHF) share price was on form and surged 24.2% higher last week. This was despite there being no news out of the private health insurer. However, investors may believe that NIB will be benefiting from lower claims because of the coronavirus outbreak. For the same reason analysts at Credit Suisse upgraded its rival Medibank Private Ltd (ASX: MPL) to an outperform rating.
The Nufarm Limited (ASX: NUF) share price was a strong performer and recorded a 19.5% gain last week. This appears to have been driven by bargain hunters snapping up shares after a very sharp drop during February and March. In addition to this, improving weather conditions may be supporting the agricultural chemicals company. It was negatively impacted by the droughts in 2019.
The Gold Road Resources Ltd (ASX: GOR) share price recorded a solid gain of 11.7% last week. After a sharp share price decline a week earlier, investors were back buying the gold miner’s shares last week. This appears to have been driven by a broker note out of Macquarie. It slapped an outperform rating and $1.30 price target on its shares.
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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 NIB Holdings 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.
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