Concerns over the escalation of the coronavirus outbreak weighed heavily on the S&P/ASX 200 Index (ASX: XJO) last week.
The benchmark index closed the week a disappointing 722.7 points or 13.1% lower at 4,816.6 points.
Whilst a good number of shares tumbled lower over the period, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:
The Southern Cross Media Group Ltd (ASX: SXL) share price was the worst performer on the ASX 200 last week with a decline of 51%. Investors have been selling media companies this month amid fears that demand for advertising could fall because of the coronavirus outbreak.
The Flight Centre Travel Group Ltd (ASX: FLT) share price was out of form last week and sank 48% lower before being placed in a trading halt. Investors were selling travel booking companies following the announcement of strict travel restrictions and lockdowns globally. In addition to this, investors responded negatively to news that rival Webjet Limited (ASX: WEB) is launching a capital raising in order to secure its future during these incredibly tough market conditions. This sparked concerns that Flight Centre would follow suit.
The Credit Corp Group Limited (ASX: CCP) share price was sold off last week and dropped 48%. Concerns that a deterioration in economic conditions could reduce the capacity of its customers to make repayments was weighing on the debt collector’s shares. In response to this the company released a trading update which revealed that it has continued to perform strongly over recent weeks and has seen no material impacts arising from COVID-19. However, it acknowledged that it is uncertain if this will remain the case and withdrew its guidance accordingly.
The Afterpay Ltd (ASX: APT) share price lost 46.6% of its value last week. Investors were selling the buy now pay later provider’s shares last week due to the coronavirus outbreak. There are concerns that increasing unemployment because of temporary and permanent business closures could impact its sales growth and cause a spike in bad debts. The company has refuted this but it doesn’t appear to have convinced everyone in the market.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.