The S&P/ASX 200 index returned to form last week thanks to the easing of trade tensions between the US and China. The benchmark index recorded a 34-point or 0.5% gain to finish the week at 6647.3 points.
Unfortunately, not all shares followed the index higher. Here's why these shares were the worst performers on the S&P/ASX 200 index last week:
The CYBG PLC (ASX: CYB) share price was the worst performer on the ASX 200 index by some distance last week with a decline of 21.8%. Investors were quick to hit the sell button after the UK-based bank was forced to increase its provisions for legacy PPI costs by between £300 million and £450 million. Management advised that this was primarily due to an unprecedented volume of PPI Information Requests received during August in advance of the August 29 deadline. This was significantly more than the market had expected and appeared disproportionately large in comparison to its peers.
The Pro Medicus Limited (ASX: PME) share price was the next worst performer on the benchmark index last week with a 9.3% decline. All of this decline came on Friday after the healthcare technology company revealed that two of its founders had sold 1 million of the company's shares each. Executive director Anthony Hall and CEO Sam Hupert sold the shares through an underwritten block trade this morning for a total of $36.1 million each. However, the market was informed of these planned sales all the way back in February 2018, so the selling appears to have been an overreaction.
The Sigma Healthcare Ltd (ASX: SIG) share price was out of form last week and dropped 7.8% lower last week. The catalyst for this was the pharmacy chain operator and distributor's half year results. Sigma posted a disappointing 19.8% decline in EBITDA compared to the prior corresponding period and provided weaker than expected guidance for the near term. In addition to this, on Friday S&P Dow Jones indices announced that Sigma would be removed from the S&P/ASX 200 index at the next quarterly rebalance.
The Spark Infrastructure Group (ASX: SKI) share price wasn't far behind with a disappointing 6.5% decline over the period. The regulated utility infrastructure company's shares dropped lower last week after trading ex-dividend for its 7.5 cents per share interim dividend. This dividend will now be paid to eligible shareholders on September 13.
