There were a number of ups and downs, but that couldn't stop the S&P/ASX 200 index from carving out a strong gain last week. The benchmark index finished the week 69.6 points or 1% higher at 6,793.7 points.
Unfortunately, not all shares on the index followed the market higher. Here's why these were the worst performers on the ASX 200:
The G8 Education Ltd (ASX: GEM) share price was the worst performer on the index last week with a 22.9% decline. Investors were quick to hit the sell button when the childcare centre operator downgraded its guidance for the full year. G8 Education warned of short-term earnings headwinds impacting its FY 2020 performance. This includes an increase in supply which looks set to weigh on its occupancy levels.
The Avita Medical Ltd (ASX: AVH) share price wasn't too far behind with a decline of 15.2%. The healthcare company's shares tumbled lower after it raised capital at a sizeable discount to its last close price at the time. Avita, the newest member of the ASX 200 index, raised $120 million via an institutional capital raising at $0.59 per share.
The Pilbara Minerals Ltd (ASX: PLS) share price was out of form last week and fell 9%. This was despite a reasonably positive market update relating to plant modifications at its Pilgangoora project. These plant modifications are nearing completion and optimisation activities are underway. In the meantime, the company's current plant production has seen initial recovery results in line with expectations. I suspect that profit taking is weighing on its shares after a strong gain over the last few weeks.
The Whitehaven Coal Ltd (ASX: WHC) share price was a poor performer last week, dropping 7.9% over the period. The catalyst for the coal miner's share price weakness was news that one of its biggest shareholders was selling down its stake. According to the AFR, US investment company Farallon Capital Management offloaded 95 million shares at $3.22 per share. This equates to around 9.3% of the company's outstanding shares.
