It was another positive week for the S&P/ASX 200 index. The benchmark index recorded a 26.4 point or 0.4% gain to finish the period at 7090.5 points.
However, not all shares were climbing higher last week. Here’s why these were the worst performing ASX 200 shares:
CIMIC Group Ltd (ASX: CIM)
The CIMIC share price was the worst performer on the index last week with an 18.2% decline. The engineering company’s shares were sold off after it provided an update on its strategic review of BIC Contracting. CIMIC revealed that it will be offloading the struggling business and exiting the Middle East. It expects to recognise a one-off, post-tax impact of around $1.8 billion in FY 2019.
NIB Holdings Limited (ASX: NHF)
The NIB share price wasn’t far behind with a decline of 16.4%. The private health insurer’s shares came under pressure after it downgraded its FY 2020 guidance. Due to an increase in claims expenses, NIB now expects its underlying operating profit (UOP) to be ~$170 million in FY 2020. Previously it was targeting UOP of at least $200 million this year.
Downer EDI Limited (ASX: DOW)
The Downer share price was out of form last week and fell 13.5%. Investors were selling the leading integrated services provider’s shares after it downgraded its profit guidance for FY 2020 due to the underperformance of its Engineering, Construction, and Maintenance business. Management advised that it now expects its NPATA to be $300 million. This compares to its previous guidance of $365 million and represents a decline of 12% year on year.
Jumbo Interactive Ltd (ASX: JIN)
The Jumbo share price tumbled 9.2% lower last week. This was despite there being no news out of the lottery ticket seller. However, prior to this week, its shares had been strong performers year to date. Some investors may have decided to take a bit of profit off the table. In addition to this, it is worth noting that Jumbo’s short interest has been edging higher in recent weeks.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited and NIB Holdings 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.