Last week the S&P/ASX 200 Index (ASX: XJO) was sold off again amid concerns over the spread of the coronavirus globally.
Over the period the benchmark index fell a disappointing 10.9%. Things would have been significantly worse, except for a Herculean effort on Friday which saw the ASX 200 bounce back from an 8% decline to finish 4.4% higher.
A large number of shares sank lower last week, but some fell more than most. Here’s why these were the worst performers on the ASX 200 index:
Oil Search Limited (ASX: OSH)
The Oil Search share price was the worst performer on the index last week with a 36% decline. Investors were selling Oil Search and other energy producers following a collapse in oil prices. The driver of this decline was the failure of OPEC+ to agree on production cuts and fears that a price war could be about to break out between Saudi Arabia and Russia. Some analysts believe oil prices could fall as low as US$20.00 a barrel in the near term.
oOh!Media Ltd (ASX: OML)
The oOh!Media share price wasn’t far behind with a 35.2% decline. A number of media and advertising companies were trading notably lower last week amid concerns that advertising markets could be hit by the coronavirus. This is due to businesses potentially cutting their marketing spend on the back of the economic turmoil caused by the outbreak.
Gold Road Resources Ltd (ASX: GOR)
The Gold Road Resources share price was out of form and fell a massive 35% last week. A number of gold miners tumbled lower last week after being caught up in the broad market selloff. This is despite them traditionally being regarded as safe havens from market volatility. The S&P/ASX All Ords Gold index fell a sizeable 19% last week.
Webjet Limited (ASX: WEB)
The Webjet share price continued its slide and fell 32% over the period. The online travel agent’s shares came under pressure after it withdrew its guidance due to the coronavirus outbreak. Webjet wasn’t alone. Fellow travel agents followed its lead and did the same throughout the week. Also weighing on the travel sector was news that President Trump has banned all travel from Europe (excluding the UK) for 30 days in an effort to fight the spread of the coronavirus.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended oOh!Media Ltd and Webjet Ltd. 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.