S&P/ASX 200 Index (ASX: XJO) shares booked an 8.1% gain in 2023. The index rose from 7,020.1 points to 7,590.8 points amid much volatility as investors fretted about high interest rates and inflation.
But which ASX 200 stocks delivered the best share price growth in each of the 11 market sectors in 2023?
Glad you asked.
The best shares of each market sector in 2023
Based on 12-month share price growth, these were the best shares of each market sector last year.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Neuren Pharmaceuticals shares were not only the healthcare sector's best performers for price growth but also the fastest risers of the entire ASX 200! The company delivered a staggering 214% share price gain, with the US FDA's approval of its Rett syndrome treatment, Daybue, a game-changer in 2023.
The ASX 200 healthcare share closed at $24.11 on Friday.
Emerald Resources NL (ASX: EMR)
In the materials sector, ASX 200 mining stock Emerald Resources skyrocketed 155% in 2023. The gold miner delivered a strong operational performance last year. Shaw and Partners portfolio manager James Gerrish said the company's Okvau mine — the first commercial gold mine in Cambodia — was "one of the world's highest-margin gold mines". Emerald Resources shares also benefitted from a rising gold price.
The ASX 200 mining share closed at $2.99 on Friday.
Boss Energy Ltd (ASX: BOE)
In the ASX 200 energy sector, uranium share Boss Energy soared by 89%. Boss is benefitting from the global pivot to nuclear energy as part of the green transition. Plenty of countries are building small modular reactors (SMEs), and this has boosted demand. The price of uranium has soared and was trading at a 17-year high of US$91 per pound on Friday. Boss signed its first US supply agreement in December.
The ASX 200 energy stock closed at $4.23 on Friday.
Seven Group Holdings Ltd (ASX: SVW)
Diversified industrial and investment company Seven Group was the No. 1 stock in the ASX 200 industrials sector with a 76% share price gain. The company booked a solid performance and announced upgraded FY24 guidance in November. At the AGM, CEO and managing director Ryan Stokes described the businesses they invested in as "highly cash generative". In FY23, Seven delivered $9.6 billion in revenue and $1.2 billion in EBIT — both up 20% — and an operating cash flow of $1.6 billion, up 55%.
The ASX 200 industrials share closed at $36.09 on Friday.
REA Group Ltd (ASX: REA)
REA Group benefitted from a surprisingly strong rebound in the property market in 2023, with its share price rising 63%. This made it the No 1. stock for price growth within the ASX 200 communications sector. REA operates online property listing platforms across Australia, Asia, and North America. In its 1Q FY24 update, REA reported a 12% increase in revenue over the prior corresponding period to $341 million.
The ASX 200 communications share closed at $177.63 on Friday.
Xero Limited (ASX: XRO)
Xero is a cloud-based accounting software provider. It was the No 1. stock in the technology sector last year, with an impressive 60% share price gain. As my Fool colleague Seb recently reported, Xero is an outstanding growth story. In FY21, the company reported $850 million in revenue, up 18% for the year. By FY22, this had grown 29% to $1.1 billion, and in FY23, it rose again by 28% to $1.4 billion.
The ASX 200 tech share closed at $106.34 on Friday.
Super Retail Group Ltd (ASX: SUL)
The owner of Rebel, Supercheap Auto, and BCF showed great resilience in the inflationary economy. It was the No.1 stock of the ASX 200 consumer discretionary sector with 48% share price growth last year. In FY23, Super Retail achieved an 11% increase in statutory net profit after tax (NPAT) to $263 million.
The ASX 200 retail stock closed at $14.54 on Friday.
Goodman Group (ASX: GMG)
Goodman Group dominated the real estate sector in 2023 with 46% share price growth. The property empire owns primarily commercial and industrial assets in cities around the world. It has a significant development pipeline in place that bodes well for further long-term growth. Plenty of brokers have a buy rating on the stock. Expectations of rate cuts in the US and Australia are a tailwind for the company.
The ASX 200 property share closed at $24.02 on Friday.
Inghams Group Ltd (ASX: ING)
Poultry business Inghams delivered one of the biggest profit jumps among ASX 200 companies in FY23. This no doubt helped boost its share price by 38%, making it the No. 1 consumer staples stock of the year. Inghams reported a 72.1% boost to reported NPAT at $60.4 million. The company raised its prices and benefitted from demand outstripping supply over the 12 months.
The ASX 200 consumer staples stock closed at $3.84 on Friday.
Hub24 Ltd (ASX: HUB)
Diversified financial services company Hub24 Ltd was the best share among the ASX 200 financials in 2023 with a 35% share price gain. Hub24 reported underlying NPAT of $58.8 million in FY23, up 64%, and a full-year dividend of 32.5 cents per share, up 63%. Hub24 managing director Andrew Alcock says advisers and the wider industry see HUB24 "as Australia's Best Platform".
The ASX 200 financials share closed at $35.82 on Friday.
AGL Energy Limited (ASX: AGL)
In the utilities sector, AGL was the No. 1 stock in 2023 with share price growth of 17%. The company benefitted from stronger wholesale prices last year. It reported a 25% increase in underlying NPAT in FY23 to $281 million and it is expecting a major increase in FY24 to between $580 million and $780 million.
The ASX 200 utilities share closed at $9.63 on Friday.
