The S&P/ASX 200 Index (ASX: XJO) had a sensational start to 2021 and recorded a sizeable gain last week. Over the five days the benchmark index rose 2.6% to 6,757.9 points.
While a good number of shares climbed higher with the market, some recorded stronger gains than others. Here's why these were the best performing ASX 200 shares last week:
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price was the best performer on the ASX 200 last week with a gain of 15.6%. Investors were piling into the resources sector after the Democrat's won control of the U.S. senate. This means it is now quite likely that the incoming Biden administration will be able to push through significant stimulus in the near future. This is expected to underpin solid economic growth and demand for commodities.
Oil Search Ltd (ASX: OSH)
The Oil Search share price wasn't far behind with a weekly gain of 15.1%. Investors were fighting to get hold of the energy producer's shares last week after oil prices surged higher. This was driven by the announcement of a surprise production cut by Saudi Arabia. The world's second largest energy producer plans to cut its production by a massive 1 million barrels per day to help combat lower demand because of the pandemic.
IGO Ltd (ASX: IGO)
The IGO share price was a strong performer and jumped 14% higher over the five days. This appears to have been driven by news that its acquisition of an interest in a global lithium joint venture with Tianqi Lithium is progressing well. On January 5, Tianqi Lithium shareholders voted overwhelmingly in favour of the transaction between Tianqi and IGO. Management believes this is a strong validation of the "win-win" the transaction has created for the shareholders of both companies.
Bingo Industries Ltd (ASX: BIN)
The BINGO share price was on form last week and climbed 12.3% higher. This was despite there being no news out of the waste management company. However, there has been speculation that BINGO could be a takeover target for a private equity firm. This could have given its shares a boost last week.
