The S&P/ASX 200 Index (ASX: XJO) was out of form last week after oil prices crashed lower. The benchmark index ended the week 4.5% lower than where it started it at 5,242.6 points.
While a good number of shares tumbled lower, some fell more than most. Here's why these were the worst performing ASX 200 shares:
The Metcash Limited (ASX: MTS) share price was the worst performer on the ASX 200 with a 17.1% decline. Investors were selling the wholesale distributor's shares after it successfully completed its $300 million fully underwritten institutional placement. This placement saw approximately 107.1 million new shares issued to institutional investors at a price of $2.80 per share. This represented a discount of almost 8% to its last close price. Metcash is now seeking to raise up to $30 million through a share purchase plan.
The SKYCITY Entertainment Group Limited (ASX: SKC) share price was just a touch behind with a decline of almost 17.1%. Earlier this month the casino and resort operator released an update on the impact the coronavirus is having on its operations. The company advised that it is losing almost NZ$90 million in revenue per month while its casinos are closed. In addition to this, it continues to incur significant costs such as utilities, lease payments and labour. Labour costs alone are around NZ$20 million per month.
The Credit Corp Group Limited (ASX: CCP) share price was out of form and fell 16.7% last week. This appears to have been driven by profit taking from investors after some stellar gains over the last few weeks. In fact, if you had bought the debt collector's shares on March 23 when the market bottomed, your investment would have doubled in value just one month later. Credit Corp's were trading at a multi-year low that day after being sold off heavily during the market crash.
The EML Payments Ltd (ASX: EML) share price was another poor performer with a 16.5% decline. This payments company's decline also appears to have been caused by profit taking. Between March 22 and April 23 the EML Payments share price had gained a massive 77%. Its shares were sold off prior to March 22 after the coronavirus pandemic impacted many of its biggest customers such as shopping centres and gambling companies. However, the renegotiation of its acquisition of Prepaid Financial Services, which freed up $100 million in liquidity, eased nerves and sent its shares hurtling higher. This appears to have quashed concerns that the company will require a dilutive capital raising to see it through the crisis.
