A poor start to the week ultimately led to the S&P/ASX 200 Index (ASX: XJO) recording a small decline last week. The benchmark index lost 0.2% of its value over the five days to end the period at 7,443 points.
Fortunately, not all shares dropped with the market. Here’s why these were the best performers on the ASX 200 last week:
Gold Road Resources Ltd (ASX: GOR)
The Gold Road share price was the best performer on the ASX 200 last week with a 16.7% gain. Investors were buying gold miners following a rise in the gold price in response to hawkish comments out of the US Federal Reserve. For the same reason, the shares of fellow gold miners Evolution Mining Ltd (ASX: EVN), St Barbara Ltd (ASX: SBM), Resolute Mining Limited (ASX: RSG), and Regis Resources Limited (ASX: RRL) recorded gains of over 11% last week.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price was the next best performing (non-gold miner) share with a 10.4% gain. Investors were buying Fortescue’s shares after the iron ore price rebounded. This appears to have been driven by favourable policies in China which analysts feel could put a floor on prices. In addition, news that its Fortescue Future Industries business has signed a jet fuel deal gave its shares a boost.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price was on form and jumped 10.3% last week. This could have been driven partly by news that the Greenland Government has passed legislation that essentially blocked Greenland Minerals Ltd (ASX: GGG) from developing a rare earths project. Management has previously stated its belief that the Kvanefjeld rare earth project has the potential to become the most significant western world producer of rare earths.
Champion Iron Ltd (ASX: CIA)
The Champion Iron share price wasn’t far behind with a gain of 9.6% over the five days. As with Fortescue, investors were buying Champion’s shares after iron ore prices rebounded. In addition, investors may believe its shares are in the bargain bin after recent declines. Macquarie certainly appears to believe that is the case. It has an outperform rating and $7.40 price target on Champion’s shares. This compares to the current Champion Iron share price of $4.45.