Despite a heavy decline on Friday, the S&P/ASX 200 Index (ASX: XJO) managed to snap its losing streak last week. The benchmark index rose 25.8 points or 0.5% to end the week at 4842.4 points.
Four shares that stood out with strong gains last week are listed below. Here’s why they were on form:
The Afterpay Ltd (ASX: APT) share price was the best performer on the ASX 200 last week with a whopping 53.5% gain. This was despite the payments company’s shares crashing to a 52-week low on Monday. One broker that believed the company’s shares had been oversold was Citi. According to a note out of the investment bank, its analysts retained their (high risk) buy rating on its shares and placed a $21.10 price target on them. This positive note appears to have played a role in its strong rise over the week.
The Corporate Travel Management Ltd (ASX: CTD) share price wasn’t far behind with a stunning 45.6% gain. Investors have been fighting to get hold of the corporate travel specialist’s shares since the release of a market update at the end of the previous week. Although the update revealed that its business has been hit hard by the coronavirus outbreak, it stressed that there is no current need to raise equity due to its strong liquidity position.
The Gold Road Resources Ltd (ASX: GOR) share price rocketed 32.9% higher last week. The catalyst for this gain was a strong rise in the gold price last week after the U.S. Federal Reserve pledged to buy an unlimited amount of government bonds to support the economy. It wasn’t just Gold Road Resources pushing higher. The S&P/ASX All Ordinaries Gold index climbed an impressive 11% last week.
The Qantas Airways Limited (ASX: QAN) share price was back on form last week and recorded a 31.8% gain. Investors were scrambling to buy the airline operator’s shares after it revealed that it has secured $1.05 billion in additional liquidity. These funds will be used to strengthen its position as it manages through the coronavirus outbreak. Management advised that this debt has been secured against part of its fleet of unencumbered aircraft.
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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 owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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