ZIP, MP1, SBM: Three ASX shares which gained over 50% in July

3 min read | July 31, 2022 04:16 PM PDT | By Ashish

ZIP, MP1, SBM: Three ASX shares which gained over 50% in July — Image source: © Rawpixelimages | Megapixl.com

Highlights

Australian shares ended in the green in July.

The ASX 200 ended the month 7% higher at 6,945.2 points.

Several shares reported sharp gains in July.

Australian shares finished July in the green. The benchmark ASX 200 index ended the month 5.7% higher at 6,945.2 points. The domestic market gained after weak economic data from the US relieved concerns that the US Federal Reserve might not act in a more hawkish manner to control rising inflation. Meanwhile, several shares reported sharp gains in July, with Zip rising over 150%.

Here we see why these three ASX-listed stocks surged more than 50% in July.

Zip Co Ltd (ASX:ZIP)

Zip was the top-performing share on the ASX 200 in July, ending the month with a gain of 159%. The beaten-down share gained sharply after the buy-now-pay-later firm ended its merger with Sezzle Ltd (ASX:SZL). According to the company, the scrapping of the merger deal with the rival would help the Australian BNPL major become profitable soon.

“We believe that mutually terminating the merger agreement with Sezzle at this time is in the best interests of Zip and its shareholders and will allow Zip to focus on its strategy and core business in the current environment,” said Zip board’s chairman Diane Smith-Gander.

Megaport Ltd (ASX:MP1)

Megaport is second on the list with a gain of 78% in July. The ASX stock has gained from the tech sector’s latest rebound after extended weakness. The other major factor which has helped the stock gain in July was its robust update for the June quarter.

The company reported EBITDA profit in the June quarter, a first for the firm. The company witnessed a loss of AU$3.8 million in the third quarter of FY2022. The company also became profitable in the Canadian and Japanese markets, earlier than originally scheduled.

“During the fourth quarter of fiscal year 2022 Megaport drove steady underlying revenue growth. Uptake of core products, as well as monthly recurring revenue growth, was strong in the quarter,” Chief Executive Officer (CEO) Vincent English said.

St Barbara Ltd (ASX:SBM)

The share price of St Barbara ended July with a 50% gain. The ASX-listed gold producer reported a decent performance for the period ended 30 June 2022 (Q4 FY22). In the fourth quarter, St Barbara reported a 40% jump in gold production from the previous corresponding period.

There was also news that the firm might be looking to boost its business with M&A activity. The company issued a confirmation that it was in talks with Genesis Minerals for a possible merger.

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