Thanks almost entirely to a rally in December, the S&P/ASX 200 Index (ASX: XJO) delivered a solid return in 2023.
Over the period, the benchmark index rose 7.8% to end the period at 7,590.8 points.
And if you throw in the average dividend yield of approximately 4%, the total annual return came to around 12%.
While this is a good return, it pales in comparison to some of the gains that were made on the ASX 200 during the 12 months.
For example, listed below are the five best-performing ASX 200 shares for the period. Here's how they performed:
Neuren Pharmaceuticals Ltd (ASX: NEU)
The Neuren share price was the best performer on the ASX 200 index in 2023 with a 214% gain. There were a number of catalysts for this strong gain. The first was the approval and strong initial sales of its Daybue product for the treatment of Rett syndrome. And late in the year, the market responded very positively to the release of top-line results from its Phase 2 clinical trial of NNZ-2591 in children with Phelan-McDermid syndrome (PMS). There are currently no approved treatments for PMS.
Emerald Resources NL (ASX: EMR)
The Emerald Resources share price was also a strong performer and rose 155% over the period. Investors were buying the gold miner's shares following a strong operational performance in FY 2023 and so far in the current financial year. In addition, a solid rise in the gold price gave the whole sector a major boost.
James Hardie Industries plc (ASX: JHX)
The James Hardie share price wasn't far behind with a gain of almost 117% in 2023. A solid performance in FY 2023 and a better-than-expected start to the new financial year helped drive its shares higher. It is also worth remembering that 2022 was not a great year for the building materials company's shares. So much so, that they started 2023 at a 52-week low.
Boss Energy Ltd (ASX: BOE)
The Boss Energy share price was on fire over the 12 months with an 89% gain. Investors were scrambling to buy Boss and other ASX uranium shares after the price of the chemical element rose to its highest level in a decade. And with nuclear power adoption expected to increase over the next decade and supply struggling to keep up, prices are expected to continue to rise in the coming years.
Boral Limited (ASX: BLD)
The Boral share price was just a touch behind with a gain of 86% over the period. Much like James Hardie, this gain was driven by a combination of a solid performance in FY 2023 and a low starting point. Boral's shares also started the year at a 52-week low and it was onwards and upwards from there. Particularly after management upgraded its FY 2024 guidance thanks to price traction and cost management across each of Boral's businesses.
