The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may have ended its winning streak on Friday, but it still gained a solid 2.8% over the week.
Unfortunately, not all shares were able to follow the benchmark index higher.
The shares listed below were the worst performers on the ASX 200 last week. Here’s why:
The Costa Group Holdings Ltd (ASX: CGC) share price was the worst performer on the ASX 200 last week with a decline of 35%. Investors hit the sell button in a hurry after the horticulture company released a surprise profit warning on Thursday. Due to subdued demand for tomatoes, berries, and avocados in December, Costa advised that it will fall short of its calendar year 2018 guidance. In addition to this, trading conditions have yet to improve in January, leading management to warn that earnings for the 12 months to June 2019 could be flat if things don’t pick up. Its previous guidance was for low double-digit earnings growth for this period.
The Saracen Mineral Holdings Limited (ASX: SAR) share price was the next worst performer, albeit some distance back with a decline of 6.5% last week. Investors switched back to risk assets last week, causing a selloff of safe haven assets such as gold. This drove the gold price lower and the miners followed suit. Saracen was closely followed by the St Barbara Ltd (ASX: SBM) share price and the Resolute Mining Limited (ASX: RSG) share price which fell 5% and 4%, respectively, last week.
The Ardent Leisure Group (ASX: AAD) share price was another poor performer with a 4% decline. With no news out of the company, I suspect that unfavourable weather conditions in Queensland are likely to be behind this decline. Investors may be concerned that wild storms in December and the arrival of ex-tropical cyclone Penny last week could be impacting Ardent Leisure’s theme parks during the peak holiday period.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP 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.