Due largely to weakness in the banking sector, the Australian share market took a tumble last week.
The S&P/ASX 200 Index dropped 70.1 points or 1% to finish the week at 6669.1 points.
Whilst a good number of shares tumbled dropped lower last week, some fell more than most. Here’s why these were the worst performers on the index:
The Costa Group Holdings Ltd (ASX: CGC) share price was the worst performer on the index last week with a 22% decline. The horticulture company’s shares were sold off after it downgraded its guidance for the fourth time in 12 months. Costa now expects calendar year adjusted net profit of $28 million. This compares to its previous guidance of $57 million to $66 million. In addition to this, the company completed its institutional entitlement offer and raised $87 million. These funds were raised at a discount of $2.20 per share. Costa is now seeking to raise a further $90 million from retail investors.
The Jumbo Interactive Ltd (ASX: JIN) share price was out of form last week and dropped a sizeable 21.2%. This sell off appears to be down to profit taking after an impressive run this year following a very strong full year result. It is worth noting that even after this week’s decline, the online lottery ticket seller’s shares are still up 184% year to date.
The Bega Cheese Ltd (ASX: BGA) share price came under pressure again last week and fell 17.5%. Investors were selling the food company’s shares after the release of a disappointing market update at its annual general meeting. According to the update, Bega Cheese has continued to experience unprecedented competitive milk supply conditions. As a result, it expects its earnings to slide in FY 2020. According to the release, normalised EBITDA is expected to be in the range of $95 million to $105 million. This will be a decline of 8.7% to 17.5% on FY 2019’s result.
The Pro Medicus Limited (ASX: PME) share price was amongst the worst performers on the market for a second week in a row with a 10% decline. The healthcare technology company’s shares have fallen heavily recently. This appears to have been driven by news that rival medical imaging software provider Canon has won a major contract in its home market. Canon signed a $47.2 million contract which will see it roll out a new medical imaging system for WA Health.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited and 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.