The S&P/ASX 200 Index (ASX: XJO) was out of form in March and fell heavily due to concerns over the impact of the coronavirus outbreak on the global economy.
Over the period the benchmark index fell a disappointing 21.2% to end it at 5,076.8 points.
Not all shares dropped lower with the market, though. Here's why these ASX 200 shares were the best performers last month:
The Metcash Limited (ASX: MTS) share price was the best performer in March by some distance with a 27.5% gain. Investors were fighting to get hold of the wholesale distributor's shares on the belief that it is benefiting greatly from the panic buying that has been sweeping Australia. In addition to this, short sellers were closing positions in a hurry, which appears to have added to the buying pressure. On March 16 Metcash has 13.1% of its shares held short. By the last week of the month it was down to 8.5% and falling.
The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price was the next best performer with a gain of 17.8%. Investors were fighting to get hold of the medical device company's shares after it upgraded its guidance for FY 2020. Fisher & Paykel Healthcare has proven to be one of just a handful of companies that are benefiting from the coronavirus outbreak. This increasing demand allowed management to upgrade its guidance to revenue of NZ$1.24 billion and net profit after tax in the range of NZ$275 million to NZ$280 million. This compares to its previous guidance of NZ$1.2 billion and NZ$260 million to NZ$270 million, respectively.
The Blackmores Limited (ASX: BKL) share price jumped 13.3% last month. The aforementioned panic buying sweeping Australia has also extended to vitamins in many supermarkets. Consumers appear to have been stocking up in order to boost their immune systems and prepare for potential lockdowns. Investors may believe this could lead to Blackmores smashing expectations in the second half of FY 2020.
The NEXTDC Ltd (ASX: NXT) share price wasn't far behind with a 13% gain in March. The data centre operator's shares were on fire thanks to the release of a strong half year result on the final day of February and a positive contract update. Furthermore, work at home initiatives have led to increasing demand for cloud-based software and video calling, which should in turn lead to greater demand for its innovative data centre solutions.
