It may have only been a short week, but it certainly was a good one for the S&P/ASX 200 index. The benchmark index rose 110.1 points or 1.7% last week to climb to 6,554 points.
Not all shares on the ASX 200 were able to follow it higher last week. Here's why these shares were the worst performers on the index over the period:
Challenger guidance disappoints.
The Challenger Ltd (ASX: CGF) share price was the worst performer on the ASX 200 last week with a decline of 18.3%. The annuities company's shares came under pressure after it provided an update at its investor day event. Challenger now expects to hit the low end of its downgraded normalised net profit before tax guidance of $545 million to $565 million. Unfortunately, it expects another tough year in FY 2020 and has provided normalised net profit before tax guidance of between $500 million and $550 million. This is due partly to lower equities growth and interest rates on shareholder capital.
Star Entertainment's disappointing trading update.
The Star Entertainment Group Ltd (ASX: SGR) share price wasn't far behind with a decline of 15.3%. Investors hit the sell button last week after the casino and resorts operator revealed that trading conditions have deteriorated materially since the end of the first half. Star advised that its domestic revenue growth has slowed considerably due partly to challenging macroeconomic conditions. As a result, normalised FY 2019 EBITDA is expected to be lower year on year.
AUSTRAC orders Afterpay audit.
The Afterpay Touch Group Ltd (ASX: APT) share price had a disappointing week, falling 10.7% over the period after announcing the receipt of a notice from AUSTRAC. That notice requires the payments company to appoint an AUSTRAC-authorised external auditor to carry out an audit in respect to its AML/CTF compliance. Although Afterpay has welcomed the opportunity to continue to work closely and constructively with AUSTRAC, some investors appear concerned that the financial intelligence agency could order changes that impact its business model.
Ardent Leisure volatility continues.
The Ardent Leisure Group Ltd (ASX: ALG) share price was the next worst performer with a decline of 6.4% over the period. The entertainment company's shares tumbled lower despite there being no news out of it. Investors may be concerned that weakening tourism could be impacting the recovery of its Dreamworld business.
