The S&P/ASX 200 Index (ASX: XJO) had a tough time in May. Due partly to an end of month selloff, the benchmark index lost 3% of its value over the period to end at 7,091.3 points.
The good news is that not all ASX 200 shares fell with the market. In fact, some even managed to record strong gains. Here's why these were the best performing ASX 200 shares in May:
Adbri Ltd (ASX: ABC)
The Adbri share price was the best performer on the ASX 200 index last month by some distance with a gain of 36%. Investors were scrambling to buy the building materials company's shares following its annual general meeting update. Management advised that "underlying Net Profit After Tax for the period ending April 2023 is significantly above January to April 2022."
Megaport Ltd (ASX: MP1)
The Megaport share price was on form and charged 21% higher in May. This network services company's shares have been on fire since the release of a surprisingly positive quarterly update on the final trading day of April. This appears to indicate that Megaport is now over the worst of its issues, much to the dismay of the short sellers that were targeting it. A rebounding tech sector also gave its shares a boost.
Xero Limited (ASX: XRO)
The Xero share price wasn't far behind with an 18% gain last month. This was driven by the release of the cloud accounting platform provider's full-year results. For the 12 months ended 31 March, Xero posted a 28% increase in operating revenue to NZ$1.4 billion, a 26% lift in annualised monthly recurring revenue to NZ$1.55 billion, and a 45% jump in adjusted EBITDA to NZ$301.7 million.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price was a strong performer and recorded a gain of 17% over the period. Investors were buying this rare earths producer's shares after it announced that the Malaysian government has granted permission to keep importing and processing lanthanide concentrate at its Malaysian facility until 2024. Lynas revealed that it is now looking at taking further action with the aim of overturning the ban completely.
