A disappointing end to the week weighed heavily on the S&P/ASX 200 index, leading to it recording a 0.5% or 32-points decline last week.
Whilst that was disappointing, spare a thought for the shareholders of the shares listed below.
Here's why they were the worst performers on the index last week:
The Metcash Limited (ASX: MTS) share price was the worst-performer on the ASX 200 last week with a decline of 18.4%. The wholesale distributor's shares were sold off following the release of its full year results. In FY 2019 Metcash posted revenue growth of 1.8% to $12.7 billion and a 3% decline in underlying profit after tax to $210.3 million. Although its result was only a touch short of expectations, the market appears concerned by the poor start to FY 2020 for its Hardware segment after the loss of a major customer.
The Pinnacle Investment Management Group Ltd (ASX: PNI) share price was the next worst performer with a decline of 13.8% over the period despite there being no news out of it. However, a note out of Morgans reveals that it has retained its add rating but trimmed the price target on its shares to $6.05 after cutting its forecasts. According to the note, it expects Pinnacle's FUMs growth to soften and inflows to tighten.
The CLINUVEL Pharmaceuticals Limited (ASX: CUV) share price fell a sizeable 12.6% last week. This decline appears to have been a case of profit taking from investors after a stellar share price rally in 2019. Even after last week's decline, the CLINUVEL share price is up 86% since the start to the year. Investors have been buying its shares due to the early success of its SCENESSE product. SCENESSE has been developed as a first-line pharmaceutical product aimed at treating patients with the rare genetic disorder erythropoietic protoporphyria (EPP).
The Orocobre Limited (ASX: ORE) share price wasn't far behind with a decline of 11.9%. Disappointing shipment news from a couple of its lithium peers this month appears to have weighed heavily on Orocobre's shares. As has a broker downgrade from UBS last week. It downgraded the lithium miner to neutral and slashed the price target on its shares to $3.50 after taking an axe to its lithium carbonate price forecasts.
