The S&P/ASX 200 Index (ASX: XJO) managed to end its losing streak last week despite sinking lower on Friday. The benchmark index climbed 25.8 points or 0.5% to end the week at 4842.4 points.
Four shares that failed to follow the market higher last week are listed below. Here’s why they were out of form:
The Graincorp Ltd (ASX: GNC) share price was the worst performer on the index last week with a 60.1% decline. The grain exporter’s heavy decline was driven by the successful demerger of its malt business. The spun off business, United Malt Group Limited (ASX: UMG), hit the ASX boards on Tuesday. The malt business had a volatile start to life on the ASX. After trading as low as $3.60 and as high as $4.50, its shares finished the week at $4.10.
The Southern Cross Media Group Ltd (ASX: SXL) share price wasn’t far behind with a 32.7% decline. This was despite its shares being rushed into a trading halt at lunch on Monday. Its shares remained suspended for the rest of the week as it assesses the impacts of the COVID-19 crisis on its business. Also falling heavily in the industry was the oOh!Media Ltd (ASX: OML) share price, which dropped 28.6% last week. This follows the completion of an institutional placement raising $156 million at a deep discount of 53 cents per share.
The InvoCare Limited (ASX: IVC) share price was out of form and sank 23.8% lower last week. Investors were selling the funerals company’s shares after the government put a limit on the number of people that can attend funerals to just 10. In addition to this, the company revealed that it was already beginning to see an impact on its core business from the restrictive social gathering measures put in place by the authorities to address the COVID-19 crisis.
The AP Eagers Ltd (ASX: APE) share price was sold off and dropped 22.6% last week. The catalyst for this decline was the auto retailer announcing that it will be halving its upcoming final dividend. Instead of paying 22.5 cents per share, it will now pay shareholders just 11.25 cents per share. The AP Eagers board believes it is prudent to ensure that cash is preserved until the uncertainties presently disrupting the market are better understood.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare Limited and oOh!Media 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.
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