The S&P/ASX 200 index was out of form last week. The benchmark index fell a disappointing 2% due to trade war concerns and finished it at 6,707 points.
A number of shares fell more than most over the period. Here’s why these were the worst performers on the ASX 200 index:
The Whitehaven Coal Ltd (ASX: WHC) share price was the worst performer on the index last week with a decline of 16.5%. The coal miner’s shares were sold off after it downgraded its guidance for FY 2020. The company was forced to downgrade its guidance after its production was impacted by challenges sourcing experienced and skilled operators for its largest operation, Maules Creek. In addition to this, dust-related events have also impacted its operations.
The Speedcast International Ltd (ASX: SDA) share price sank 12.3% lower last week despite there being no news out of the remote communications company. Its shares have come under significant pressure since its credit rating was downgraded by S&P Global last month. In addition to this, short sellers appear to believe that it could disappoint again in FY 2020. Short interest continues to rise and reached 13.3% at the end of the week.
The Boral Limited (ASX: BLD) share price wasn’t far behind with a decline of 10.3% last week. Investors were heading to the exits after the building supplies company identified financial irregularities in its North American Windows business. This includes the misreporting of inventory levels and raw material and labour costs. Management expects this to impact its EBITDA by US$20 million to US$30 million in FY 2020.
The Pinnacle Investment Management Group Ltd (ASX: PNI) share price tumbled 9.7% lower last week. This was despite there being no news out of the investment management company. However, as with Speedcast, it is worth noting that Pinnacle has experienced a notable increase in short interest in recent weeks. At the last count 5.4% of its shares were held short.
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