It was a month to forget for the S&P/ASX 200 Index (ASX: XJO) in January. During the period, the benchmark index lost 6.4% of its value to close at 6,971.6 points.
Fortunately, not all shares were dragged lower by the market selloff. Some even recorded solid gains during the month. Here's why these were the best performers on the ASX 200 in January:
Champion Iron Ltd (ASX: CIA)
The Champion Iron share price was the best performer on the ASX 200 last month with an 18.6% gain. Investors were buying the Canadian iron ore miner's shares following the release of its third quarter update. While Champion Iron reported a 23% decline in revenue to C$253 million and a 43% reduction in EBITDA to C$122.1 million, this was ahead of expectations thanks to higher iron ore prices. Goldman Sachs was only expecting EBITDA of C$87 million for the three months.
Beach Energy Ltd (ASX: BPT)
The Beach Energy share price wasn't far behind with a gain of 17.5% in January. This gain appears to have been driven by rising oil prices and the release of a number of bullish broker notes in response to its quarterly update. In respect to the latter, Morgans is one of the broker's that was pleased with its performance. Its analysts retained their add rating and increased their price target to $1.72. Morgans suspects that Beach could upgrade its guidance with its half year results.
AGL Energy Limited (ASX: AGL)
The AGL Energy share price was on form and charged 15.6% higher over the period. The catalyst for this appears to have been a broker note out of Credit Suisse. According to the note, the broker upgraded the energy company's shares to an outperform rating with a lofty price target of $8.50. This compares to the end of month AGL share price of $7.10. It appears to believe AGL is over the worst of its issues now.
Woodside Petroleum Limited (ASX: WPL)
The Woodside share price was a positive performer and recorded a 14.3% gain in January. Rising oil prices, optimism over its merger with the petroleum assets of BHP Group Ltd (ASX: BHP), and a strong fourth quarter update boosted its shares last month. In respect to the latter, Woodside delivered an 86% quarter on quarter increase in sales revenue to US$2,852 million. This was driven by a 22% increase in sales volume to 31.8mmboe and a 53% lift in its average realised price to US$90 per barrel of oil equivalent.
