The S&P/ASX 200 Index (ASX: XJO) was well and truly out of form in May. Over the month, the benchmark index fell a disappointing 3% to 7,229 points.
Fortunately, some shares were able to defy the selloff and storm higher. Here's why these were the best performers on the ASX 200 last month:
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PolyNovo Ltd (ASX: PNV)
The PolyNovo share price was the best performer on the ASX 200 last month with a 30.5% gain. The catalyst for this gain was the release of a large number of announcements revealing that the medical device company's chairman, David Williams, was buying shares through on-market trades. However, this hasn't spooked short sellers, who continued to increase their holdings during the month.
Allkem Ltd (ASX: AKE)
The Allkem share price was on form and charged 11.9% over the period. This appears to have been driven by optimism that lithium prices will remain higher for longer. Particularly after a rival's spodumene concentrate digital auction received a new record winning bid. This was the fourth consecutive increase in prices and well ahead of expectations.
Codan Limited (ASX: CDA)
The Codan share price wasn't far behind with a 10.8% gain last month. This was driven by the release of the metal detector focused technology company's trading update and guidance for FY 2022. Codan revealed that business is booming and it expects to match its record first-half profit in the second half. This would mean a record full-year profit of $100 million, which will be a 56% increase year on year.
Mineral Resources Limited (ASX: MIN)
The Mineral Resources share price was a positive performer and rose 9.1% in May. Investors were buying this mining and mining services company's shares due to its exposure to two hot commodities – iron and lithium. With both commanding high prices, investors appear to be betting on strong profits in the coming years. A note out of Credit Suisse is also likely to have given its shares a boost last month. The broker initiated coverage on the company's shares with an outperform rating and $73.00 price target.
