The S&P/ASX 200 index bounced back from a selloff a week earlier and recorded a gain of 1.4% last week to finish it at 6606.8 points.
Unfortunately, not all shares climbed higher last week. Here’s why these were the worst performers on the S&P/ASX 200 index over the period:
The Flight Centre Travel Group Ltd (ASX: FLT) share price was the worst performer on the index last week with a 10.5% decline. Investors were selling the travel company’s shares last week after it released a trading update at the Morgans Queensland event. Although the travel agent reported TTV growth across the business, it warned that its first half profits will be down on the prior corresponding period. Full year profit guidance will be provided at next month’s AGM.
The Resolute Mining Limited (ASX: RSG) share price wasn’t far behind with a decline of 10.4% last week. The gold miner’s shares crashed lower after it reported issues at its Syama Gold Mine in Mali. According to the release, Resolute has taken its roaster offline after detecting a crack in the main external shell. The roaster is a key component of the sulphide processing circuit at the Syama Gold Mine. The next step for management will be to assess the damage once the roaster has cooled. After which, it intends to investigate and advise the market of the impact to its full year production.
The Speedcast International Ltd (ASX: SDA) share price was out of form last week and recorded a 9.7% decline. With no news out of the company, this decline appears to be a case of profit taking after a strong share price gain in September. The shares of the provider of remote communications and IT services rocketed 58.1% higher in September. This was probably down to bargain hunters swooping in after a very sharp decline in August.
The Harvey Norman Holdings Limited (ASX: HVN) share price tumbled 7.6% lower last week. The majority of this decline can be attributed to the retailer’s shares trading ex-dividend for its 21 cents per share fully franked final dividend. Eligible shareholders can now look forward to receiving this payout in their nominated bank accounts on November 1.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. 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.