The S&P/ASX 200 Index (ASX: XJO) was on form in August and overcame a difficult earnings season to record a solid gain.
The benchmark index climbed a sizeable 132.7 points or 2.2% during the month to end it at 6,060.5 points.
While a good number of shares pushed higher with the market, some climbed more than most. Here's why these were the best performing ASX 200 shares in August:
Corporate Travel Management Ltd (ASX: CTD)
The Corporate Travel Management share price was the best performer on the ASX 200 last month with a stunning 83% gain. Investors were fighting to get hold of the corporate travel specialist's shares following the release of its full year results. Although Corporate Travel Management posted a loss of $8.2 million for the year, investors appear to have been pleased with its performance early in FY 2021. Management revealed that bookings in July were greater than in June. It believes this suggests that a broad-based recovery in corporate travel activity is underway. This could mean the worst is over for the company.
IDP Education Ltd (ASX: IEL)
The IDP Education share price was some way behind as the next best performer on the index with a 51% gain. Investors were buying the student placement and language testing company's shares following the release of a strong full year result. Although IDP Education has been disrupted significantly by the pandemic, it still managed to deliver profit growth that many companies would be envious of in a normal year. The company posted a 2% decline in revenue to $587.1 million but an impressive 29% increase in EBITDA to $148.6 million. The latter was driven by excellent cost control.
Reliance Worldwide Corporation Ltd (ASX: RWC)
The Reliance Worldwide share price wasn't far behind with a 42.5% gain in August. The catalyst for this was the plumbing parts company's release of its FY 2020 results. As was expected, Reliance delivered a weak result in FY 2020. It reported a 5% increase in sales to $1.16 billion but a 33% decline in net profit after tax to $89.4 million. However, investors were pleased to hear that FY 2021 has started positively. Management advised that its sales were strong in the United States in July, with other regions also performing well. This has continued during the first three weeks of August.
Mesoblast limited (ASX: MSB)
The Mesoblast share price was on form and stormed 40.5% higher last month. Investors were buying the biotechnology company's shares following a very positive outcome from its meeting with the Oncologic Drugs Advisory Committee (ODAC). This meeting was to discuss its remestemcel-L product candidate as a potential treatment for paediatric steroid-resistance acute graft versus host disease (paediatric SR-aGvHD). The ODAC was supportive of remestemcel-L. In light of this, the likelihood of the U.S. FDA approving the drug on 30 September looks strong.
