The S&P/ASX 200 Index (ASX: XJO) was well and truly on form in July. During the month, the benchmark index rose a sizeable 4.2% to end at 8,092.3 points.
Four ASX 200 shares that recorded even stronger returns are named below. Here's why they were the best performers on the index last month:
Iress Ltd (ASX: IRE)
The Iress share price was the best performer on the ASX 200 in July with a 32% gain. Last month, this financial services software provider released its guidance for the first half of FY 2024. It advised that adjusted EBITDA is expected to be between $65 million to $67 million for the period. This is up approximately 50% from $44 million in the prior corresponding period. Management notes that the material uplift in earnings comes as Iress enters the final stages of its transformation program, which is on track to complete in December.
Zip Co Ltd (ASX: ZIP)
The Zip share price wasn't far behind with a gain of 30.8%. Zip, which was added to the benchmark index during the month, surged higher following the completion of a capital raising and the release of its quarterly update. Zip was able to raise $217 million via an equity placement at $1.56 per new share, which represented a discount of just 2.8% to its last close price. These funds are being used for the early repayment of Zip's existing corporate debt facility and associated exit fee. It seems that Zip didn't have any problems raising the funds after impressing the market with its strong profitable growth in the fourth quarter. Its addition to the ASX 200 index is also likely to have boosted its share price. After all, index funds need to buy shares to reflect the ASX 200's changes.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price had a strong month and charged 21.4% higher. The catalyst for this was the release of the fund manager's latest monthly update. In June, Magellan revealed that its net flows were flat. This comprised net retail outflows of $0.2 billion and net institutional inflows of $0.2 billion. It also revealed that it will be entitled to estimated performance fees of approximately $19 million for the year. Investors appear hopeful that this signals the end of its institutional outflows.
Coronado Global Resources Inc (ASX: CRN)
The Coronado Global share price was on form in July and rose 21%. Investors were buying the coal miner's shares on the first day of the month amid news of a fire burning underground in a major coal mine owned by Anglo American in Queensland. The Grosvenor mine was expected to produce 2.3 million tonnes of metallurgical coal this year. But with the fire raging until late in the month, Grosvenor is expected to be out of action for many months. This could have a meaningful impact to global supply.
