The S&P/ASX 200 Index (ASX: XJO) wasn’t able to continue its positive form and tumbled lower last week. The benchmark index fell 0.6% to end the period at 6,806.7 points.
Fortunately, not all shares dropped with the market. Here’s why these were the best performing ASX 200 shares last week:
Zip Co Ltd (ASX: Z1P)
The Zip share price was the best performer on the ASX 200 last week with an impressive 24.8% gain. This stretched the buy now pay later (BNPL) provider’s year to date gain to a whopping 104.7%. Investors were fighting to get hold of the company’s shares amid speculation it is considering a secondary listing in the United States. This would give Zip greater access to US capital markets. In addition to this, a strong second quarter update and an overall re-rating of BNPL shares following the Affirm IPO in the United States has been supporting the Zip share price.
Vocus Group Ltd (ASX: VOC)
The Vocus share price was some way behind as the next best performer with a gain of 12.8% over the five days. Investors were buying the telco’s shares after it confirmed the receipt of a takeover approach. According to the release, the company has received a confidential non-binding, indicative proposal from Macquarie Infrastructure and Real Assets (MIRA) and its managed funds. MIRA has tabled an offer of $5.50 per share, which represented a 25.5% premium to its last close price at the time. Vocus has granted MIRA with due diligence access. However, with the Vocus share price ending the week at $4.94, investors don’t appear overly confident that a deal will be done.
Graincorp Ltd (ASX: GNC)
The GrainCorp share price was on form last week and stormed 12.5% higher. The catalyst for this was the release of a trading update by the grain exporter. According to the release, Graincorp expects to report FY 2021 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $230 million to $270 million. This will be an increase of 113% to 150% from FY 2020’s EBITDA of $108 million. Management advised that it experienced near optimal conditions across much of eastern Australia during the recent winter cropping season. This led to one of the largest crops in recent history.
Insurance Australia Group Ltd (ASX: IAG)
The Insurance Australia Group share price was a positive performer and rose 7.9% over the period. Investors were buying the insurance giant’s shares following the release of a stronger than expected half year result. IAG delivered a 3.8% increase in gross written premiums (GWP) to $6,188 million for the first half. And thanks to lower motor claims, the company reported an impressive 33.1% increase in insurance profit to $667 million. And while it posted a statutory loss after tax of $460 million, this didn’t stop the IAG board from declaring a 7 cents per share interim dividend.