Despite a disappointing end to the week, positive trade war developments led to the S&P/ASX 200 index recording a solid gain last week. The benchmark index rose 76.6 points or 1.1% to 6816.3 points.
Unfortunately, not all shares were pushing higher with the market. Here's why these ASX 200 shares were the worst performers on the benchmark index last week:
Smartgroup Corporation Ltd (ASX: SIQ)
The Smartgroup share price was the worst performer on the benchmark index last week with a 24.2% decline. Investors were quick to sell the salary packaging and fleet management company's shares after the release of a profit warning. Due to changes by its insurance underwriting partner, management warned that earnings from its sales of insurance products are expected to be impacted in FY 2020. It estimates that the damage will be an after tax impact of $4 million.
Perenti Global Ltd (ASX: PRN)
The Perenti Global share price wasn't far behind with a disappointing 21% decline. The mining services company's shares were sold off after it downgraded its underlying net profit after tax guidance for FY 2020. This followed the loss of a key equipment hire contract with Ghana Manganese Company. Perenti Global, formerly known as Ausdrill, downgraded its underlying NPAT guidance from $140 million to between $115 million and $120 million. Management stressed that the contract loss was not performance related and was due to production caps.
Jumbo Interactive Ltd (ASX: JIN)
The Jumbo Interactive share price crashed 16.9% lower last week following the release of an underwhelming trading update. The online lottery ticket seller revealed that it expects to post a 24% increase in revenue in the first half. However, due partly to an increase in business development costs, its profit margins have narrowed. In light of this, it expects to report net profit after tax growth of just 13% to $14.3 million. The same period last year Jumbo more than doubled its profit, so this slowdown appears to have spooked investors.
Lynas Corporation Ltd (ASX: LYC)
The Lynas share price fell a disappointing 7% last week. Investors were selling the rare earths producer's shares after it provided an update on its processing limits in Malaysia. Unfortunately for Lynas, it has been unsuccessful in obtaining Malaysian regulatory approval for an increase in the lanthanide concentrate processing limit for calendar year 2019.
