Last week the S&P/ASX 200 Index (ASX: XJO) returned to form and stormed higher. The benchmark index climbed 225.1 points or 4.65% higher to end the week at 5067.5 points.
Not all shares were climbing higher with the market last week. Here's why these were the worst performers on the index last week:
The Webjet Limited (ASX: WEB) share price was the worst performer on the index last week with a 27.9% decline. Investors were selling the online travel agent's shares after it returned from its suspension. Webjet's shares returned to trade after it completed the institutional component of its equity raising. Webjet is raising a total of $346 million at $1.70 per new share. This was a massive 55% discount to its last close price. These funds will be used to see the company through until the end of the year.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price was out of form and dropped 14.9% last week. The catalyst for this decline appears to be a bearish broker note out of Credit Suisse. According to the note, the broker has downgraded the airport operator's shares to an underperform rating with a $4.50 price target. Credit Suisse suspects that a full recovery might take until 2023 for domestic passengers and 2024 for international passengers.
The Resolute Mining Limited (ASX: RSG) share price wasn't far behind with a 12.2% decline. This appears to have been caused by the release of a COVID-19 update a week earlier. Although Resolute's production has not been impacted thus far, it has warned that this may not always be the case. Management advised that the COVID-19 pandemic poses unique risks and challenges to global mining companies operating in Africa like it does.
The Virgin Australia Holdings Ltd (ASX: VAH) share price fell 9.9% last week. Investors were hitting the sell button last week amid concerns over the company's future. The airline operator confirmed that it was looking into financial support from the Australian Government in the order of $1.4 billion. This is part of a broader industry support package to prepare for a prolonged crisis. However, it appears as though some senior cabinet ministers are reluctant bail out the airline.
