Last week the S&P/ASX 200 index had a week to forget when U.S. recession fears weighed heavily on investor sentiment and led to the benchmark index sliding 178.9 points or 2.7% lower.
Whilst the majority of shares on the index traded lower over the period, a number of shares performed particularly poorly.
Here's why these shares were the worst performers on the ASX 200 last week:
The oOh!Media Ltd (ASX: OML) share price was the worst performer on the index last week with a 29% decline. The majority of this decline came on Friday when the media and outdoor advertising company's shares crashed lower following a profit guidance downgrade. Challenging trading conditions has led to oOh!Media cutting its FY 2019 EBITDA guidance from between $152 million and $162 million to between $125 million and $135 million.
The Orocobre Limited (ASX: ORE) share price gave back its gains from the previous week when it dropped 20.6% last week. This happened despite there being no material news out of the company. I suspect short sellers may have been targeting the lithium miner again on the belief that prices of the battery making ingredient will continue to weaken. This is despite lithium giant Albemarle suggesting prices would rise over the remainder of the year.
The Blackmores Limited (ASX: BKL) share price wasn't far behind with a decline of 20%. Investors were quick to hit the sell button after the health supplements company reported a 1% increase in full year revenue to $610 million and a 24% decline in full year net profit after tax to $53 million. Things may get worse before they get better for Blackmores, with management warning that trading conditions remain tough and that the first half will be weaker than the prior corresponding period. One broker that was not impressed was Citi. It retained its sell rating but slashed the price target on its shares by almost 25% to $63.00.
The Pact Group Holdings Ltd (ASX: PGH) share price fell by a sizeable 18.7% last week. This was driven by the release of a disappointing full year result by the packaging company. Although Pact posted a 10% increase in revenue to $1,834 million in FY 2019, it recorded a statutory net loss after tax of $290 million. This loss included after-tax non-cash asset impairments of $327 million. Looking ahead, next year the company expects just a modest improvement in EBITDA.
