The S&P/ASX 200 index was on form again last week and recorded a solid gain. The benchmark index ended the period 55 points or 0.8% higher at 6724.1 points.
Whilst the majority of shares on the index pushed higher, some failed to shine and dropped lower. Here’s why these were the worst performers on the ASX 200:
The Saracen Mineral Holdings Limited (ASX: SAR) share price was the worst performer on the ASX 200 last week with a decline of 10%. Saracen came under pressure after trade deal optimism led to a reduction in demand for safe haven assets. This sent the gold price sinking lower. It wasn’t just Saracen falling heavily. A whopping 8 of the 10 worst performers on the index last week were gold miners. This includes Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).
The next worst non-gold miner was the Perenti Global Ltd (ASX: PRN) share price with a 7.7% decline. Its shares were sold off after a security incident at one of its African operations. Perenti, formerly known as Ausdrill, revealed that there was an attack on workers at the Bongou mine site in Burkina Faso.
The Polynovo Ltd (ASX: PNV) share price wasn’t far behind with a 7.6% decline. This appears to have been driven by profit taking. After all, the dermal-focused medical device company’s shares are up a staggering 266% this year. This strong gain has been driven by the impressive sales growth of its NovoSorb BTM product. They grew a whopping 435% year on year in FY 2019.
The Charter Hall Group (ASX: CHC) share price was out of form last week with a decline of 6.2%. Last week Charter Hall sold a 15% indirect interest in the Telstra Corporation Ltd (ASX: TLS) head office at 242 Exhibition St for $63.6 million to Charter Hall Long WALE REIT (ASX: CLW). The latter, which also tumbled lower, undertook a fully underwritten equity raising of approximately $242 million to fund this and other acquisitions.
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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 Telstra 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.