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.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.