Thanks to the surprise election result last week, the S&PASX 200 index stormed notably higher. The benchmark index finished the period with a gain of 1.4% to 6456 points.
Not all shares were able to follow the market higher, though. Here's why these shares were the worst performers on the index last week:
The Technology One Limited (ASX: TNE) share price was the worst performer on the ASX 200 last week with a decline of 22.9%. Investors hit the sell button in a panic following the release of the software company's half year results. Although Technology One delivered a 130% increase in half year profit before tax, investors appear to have been disappointed by its full year guidance. Despite the strong first half, management expects full year profit before tax growth of just 7.7% to 14.7% in FY 2019.
The Nearmap Ltd (ASX: NEA) share price was the next worst performer on the benchmark index with a decline of 13.3% despite there being no news out of the aerial imagery technology and location data company. However, prior to last week its shares had quadrupled in value over the space of 12 months. This could have led to some investors taking a bit of profit off the table following a spot of weakness in the tech sector.
The ALS Ltd (ASX: ALQ) share price was a poor performer last week with a decline of 12% following the release of the testing services company's full year results. ALS reported a 27.3% increase in underlying net profit to $181 million, which was actually ahead of its guidance range of $170 million to $175 million. However, as with Technology One, its guidance appears to have spooked investors. In its outlook management advised that it expects things to "remain stable." Whereas the market had been forecasting more strong growth in FY 2020.
The Webjet Limited (ASX: WEB) share price came under pressure last week and dropped 10.5%. Investors hit the sell button amid concerns that the company's UK partner, Thomas Cook, could struggle to survive through the northern hemisphere's summer holiday season. Things are looking so bleak for Thomas Cook that analysts at Citi described its shares as "worthless".
