The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) closed the day a fraction higher on Friday but this was not enough to finish it with a weekly gain. The benchmark index fell 5.4 points or 0.1% during the period.
Four shares that acted as a drag on the index last week are listed below. Here's why they were the worst performers on the ASX 200:
The Pact Group Holdings Ltd (ASX: PGH) share price was the worst performer on the ASX 200 last week with a 23% decline. Investors headed to the exits in their droves after the packaging company announced that it would recognise a non-cash impairment charge in the range of $310 million to $340 million after tax in its first half results. Management advised that the impairment charges reflect challenging trading conditions and a moderated long-term outlook for Pact's Australian businesses, resulting in the use of more conservative assumptions regarding growth and discount rates.
The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price tumbled 11.5% lower last week following the release of an underwhelming first half result. The regional bank delivered flat cash earnings at $219.8 million and held its interim dividend steady at 35 cents per share fully franked. One broker that didn't like what it saw was Citi. According to a note, the broker downgraded the bank's shares to a sell rating and cut the price target on them by over 15% to $9.50. Citi was disappointed with the result and appears concerned that revenue headwinds are building and costs are growing.
The AMP Limited (ASX: AMP) share price fell 10% last week, leaving its shares now just 4 cents off a 15-year low of $2.14. Investors were selling the embattled financial services company's shares after it reported a 55% decline in full year revenue from ordinary activities to $8,286 million and a staggering 97% drop in full year net profit. AMP's profits were impacted by advice remediation costs of $469 million and Royal Commission costs of $32 million. On an underlying basis AMP's performance wasn't as bad, with underlying profit falling 35% to $680 million.
The Orocobre Limited (ASX: ORE) share price dropped 9% last week despite there being no news out of the lithium miner. Orocobre's shares have come under significant pressure over the last 12 months due to a sharp decline in lithium prices and an increasingly bleak outlook for the white metal over the near term. The combination of increasing supply and falling demand in China has weighed on prices.
