The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) continued its solid form last week and climbed a further 105 points or 1.8% to 5879.6 points.
Not all shares on the benchmark index managed to follow it higher, though.
The worst performing shares on the index last week are listed below. Here's why they underperformed:
The Star Entertainment Group Ltd (ASX: SGR) share price was the worst performer on the ASX 200 last week with a 7% decline. Although there was no news out of the company last week, investors have been selling off casino shares since late last year when their respective AGM updates underwhelmed. Star Entertainment's shares were trading at a 52-week low on Friday despite the market's positive move. One broker that sees this as an opportunity is Ord Minnett. Last week it revealed that it has retained its buy rating and $6.10 price target on the company's shares.
The Estia Health Ltd (ASX: EHE) share price was the next worst performer with a 4% decline last week. The majority of this decline came on Friday when investors hit the sell button in hurry after the Royal Commission into Aged Care Quality and Safety got underway in Adelaide. This latest decline means the aged care provider's shares have lost over 38% of their value since this time last year. I suspect its shares will remain under pressure until at least the release of the inquiry's interim report in October.
The Lynas Corporation Ltd (ASX: LYC) share price was another poor performer last week with a decline of just under 4%. The rare earths company's shares dropped lower despite there being no news out of it. Lynas shares have been sold off in recent months due to concerns over the future of its operations in Malaysia. Earlier this month Lynas appealed against the Malaysian government's decision to mandate the removal of 450,000 metric tonnes of radioactive waste out of the country, but it remains unclear if it will succeed.
