The S&P/ASX 200 index had a strong end to the week to finish it with a small weekly gain of 3.8 points or 0.1%.
Not all shares on the benchmark index were able to follow it higher over the period. Here’s why these shares were the worst performers on the index last week:
The CIMIC Group Ltd (ASX: CIM) share price was the worst performer with a decline of 18.8% last week. Investors headed to the exits in their droves following the release of the contractor’s half year results after the market close on Wednesday. In the first half of FY 2019, CIMIC delivered a 1% increase in net profit after tax to $367 million. This was well short of Goldman Sachs’ estimate for a 9% increase in profits. In addition to this, CIMIC reported very weak cash flows during the half.
The AMP Limited (ASX: AMP) share price crashed 16.7% lower last week. The catalyst for this was news that the RBNZ had blocked the sale of the embattled financial services company’s AMP Life business to Resolution Life. Because of this, the company has suspended its interim dividend and there is now speculation that a capital raising will be required in the near future.
The Perpetual Limited (ASX: PPT) share price fell a disappointing 14.4% last week following the release of the fund manager’s latest FUM update. Although the company had a positive quarter in respect to market performance, it recorded its ninth consecutive quarter of net outflows. This led to analysts at Macquarie retaining their underperform rating and trimming the price target on its shares to $36.00.
The Oil Search Limited (ASX: OSH) share price sank 9.9% last week. As well as coming under pressure due to a decline in oil prices, investors hit the sell button following the release of the energy producer’s latest update. They may be concerned with developments in Papua New Guinea following the sacking of its controversial prime minister Peter O’Neill. The new government has not yet signed off on the P’nyang Gas Agreement.
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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.