Last week the S&P/ASX 200 index bounced back from a selloff a week earlier and recorded a very strong gain. The benchmark index finished the period 2% higher than where it started it at 6,846 points.
Whilst the majority of shares on the index climbed higher, a handful were unfortunately out of form. Here's why these shares were the worst performers on the benchmark index last week:
The Nufarm Limited (ASX: NUF) share price was the worst performer on the index by some distance with a 19.6% decline. Investors were selling the agricultural chemical company's shares after it reported a costly accounting error. When reconciling accounts with its German customers for the 2019 calendar year, Nufarm identified additional sales rebate claims from customers. This is expected to result in a negative $9 million impact to its first half EBITDA. Also weighing on its shares was management's warning that trading conditions have been very difficult in FY 2020.
The Bank of Queensland Limited (ASX: BOQ) share price was out of form again and dropped 9.4% last week. The regional bank's shares sunk lower after it successfully completed its $250 million institutional share placement. The bank revealed that it raised the funds at the very top of its price range at $7.78 per new share. This was a 10% discount to its last close price. These funds will be used to strengthen its balance sheet and lift its CET1 ratio.
The Speedcast International Ltd (ASX: SDA) share price wasn't far behind with a decline of 8.5%. Investors have been selling the remote communications company's shares since its credit rating was downgraded by S&P Global earlier this month. The ratings agency has lowered its issuer credit rating to B- from B and maintained the outlook as Negative. A sustained increase in short interest also appears to be weighing on its shares. At the last count, 17.2% of its shares were held short.
The Galaxy Resources Limited (ASX: GXY) share price was out of form once again and fell 7.5% last week. This lithium miner's shares have come under pressure this year due to a sharp and sustained decline in lithium prices. Unsurprisingly, as with Speedcast, this has led to it becoming one of the most shorted shares on the ASX. It currently has 16.9% of its shares held short.
