The S&P/ASX 200 Index (ASX: XJO) was in sparkling form last week and recorded its best weekly gain in almost six months. The benchmark index rose 5.4% over the five days to 6,102.2 points
While the majority of shares on the index pushed higher last week, some recorded particularly strong gains.
Here's why these were the best performing ASX 200 shares last week:
CIMIC Group Ltd (ASX: CIM)
The CIMIC share price was the best performer on the ASX 200 with a massive 20.4% gain. A good portion of this came on Friday when the engineering company released its third quarter update which revealed an uptick in its performance. In addition to this, the Federal Budget is aiming to ignite the Australian economy with heavy infrastructure investment. This could lead to strong demand for its services in the near term. For the same reason, the Seven Group Holdings Ltd (ASX: SVW) share price stormed 17.9% higher last week.
Virgin Money UK CDI (ASX: VUK)
The Virgin Money UK share price wasn't far behind with a 20% rise over the five days. This was despite there being no news out of the UK-based bank. However, the banking sector was a solid performer last week, with the big four banks all recording notable gains over the five days. The latter appears to have been driven by optimism over the Federal Budget's impact on the economy and the sector.
Eagers Automotive Ltd (ASX: APE)
The Eagers Automotive share price was on form last week and stormed 17.5% higher. Once again, this appears to be related to the Federal Budget. Investors may believe that tax cuts will support vehicle sales in the near future. In addition to this, the government will allow businesses with turnover of up to $5 billion a year to immediately write-off all assets up to $150,000. This could support new vehicle sales for business use.
Zip Co Ltd (ASX: Z1P)
The Zip share price was a very strong performer and jumped 16.5% higher over the five days. This appears to have been driven by bargain hunters swooping in after a sharp decline in September. In addition to this, a very strong update from one of its buy now pay later provider peers gave its shares a lift.
