The S&P/ASX 200 index was on form last week and stormed an impressive 1.3% higher to end it at 6739.2 points.
Unfortunately, not all shares followed the market higher over the period. In fact, some tumbled notably lower.
Here’s why these ASX shares were the worst performers on the ASX 200 index last week:
The WiseTech Global Ltd (ASX: WTC) share price was out of form again and fell 12.1% over the period. A second short seller report from J Capital weighed on investor sentiment last week. This was despite the company providing another comprehensive response to the report and refuting all its allegations.
The Pro Medicus Limited (ASX: PME) share price tumbled a sizeable 11.5% lower last week. The catalyst for this decline may have been news that a rival won a major contact in Western Australia. Medical imaging software provider Canon signed a $47.2 million contract which will see it roll out a new medical imaging system for WA Health. This will replace its old Agfa radiology information and picture archiving and communication systems.
The Cleanaway Waste Management Ltd (ASX: CWY) share price dropped 10.2% last week. All this decline came on Friday after the waste management company released its annual general meeting presentation. At the meeting the company warned that its first half profits would be flat on the prior corresponding period. This is due to a combination of lower economic activity, softness in commodity prices, and a reduction in local Queensland volumes. Management expects things to improve in the second half, but that didn’t stop some investors from hitting the sell button.
The Galaxy Resources Limited (ASX: GXY) share price was out of form yet again last week and fell a further 8.2%. Last week the lithium miner released its quarterly update and revealed plans to cut production significantly in FY 2020. Management is doing this in response to weakening lithium prices. It is also aiming to cut its costs in order to make its operations profitable despite the lower production level. This appears to be a sign that the lithium market is not going to get better any time soon.
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James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia has recommended Pro Medicus Ltd. 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.