After a strong start to the financial year, the S&P/ASX 200 Index (ASX: XJO) gave back its gains and more during the coronavirus crisis. This led to the benchmark index ultimately recording a 10.9% decline for the 2020 financial year.
Not all shares were out of form during the 12 months. Here’s why these ASX 200 smashed the market:
Afterpay Ltd (ASX: APT)
The Afterpay share price was the best performer on the ASX 200 during the 2019-20 financial year with a gain of 150%. Investors were fighting to buy the payments company’s shares after it continued its meteoric customer and sales growth. This was especially the case during the pandemic when many feared its business model would struggle. In addition to this, the arrival of WeChat owner Tencent as a substantial shareholder has got investors excited. They believe Tencent could open the door to the Asia market for Afterpay.
Perseus Mining Limited (ASX: PRU)
The Perseus Mining share price wasn’t far behind with an impressive 140% gain during the last financial year. Investors have been buying the gold miner’s shares following a sharp rise in the price of the precious metal. This has been driven by increasing demand for safe haven assets during the pandemic. In addition to this, a solid production performance, the development of Yaoure, encouraging exploration results at Sissingue’s Zanikan prospect, and its inclusion in the ASX 200 index have given its shares a lift.
Mesoblast Limited (ASX: MSB)
The Mesoblast share price was on form and surged 129% higher during the last 12 months. The majority of this gain has come in the last few months after investors responded positively to trial results. Mesoblast’s allogeneic cellular medicine remestemcel-L has performed strongly in COVID-19 infected patients with moderate to severe acute respiratory distress syndrome (ARDS) on ventilator support. Mesoblast was also added to the ASX 200 at the recent rebalance.
Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)
The Fisher & Paykel Healthcare share price wasn’t far behind with a 116% gain during the financial year. Investors were buying the medical device company’s shares following a series of guidance upgrades and an impressive full year result. This was driven largely by strong demand for its ventilators during the pandemic. In FY 2020, operating revenue increased 18% to NZ$1.26 billion and net profit jumped 37% to NZ$287.3 million.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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