The S&P/ASX 200 Index (ASX: XJO) was back on form in April and had its best month in decades. Over the period the benchmark index recorded a gain of 8.8%.
Not all shares were able to follow the market higher last month. Here's why these ASX 200 shares were the worst performers in April:
The Metcash Limited (ASX: MTS) share price crashed 21% lower last month and was the worst performer on the index. The wholesale distributor's shares were sold off last month after it launched an equity raising. Metcash has successfully completed its $300 million fully underwritten institutional placement and is now seeking to raise up to $30 million through a share purchase plan. The company raised the funds through the issue of approximately 107.1 million new shares to institutional investors at a price of $2.80 per share. This was a discount of almost 8% to its share price at the time.
The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price was out of form last month and fell 12.3%. The medical device company's share price decline appears to have been driven by profit taking after a very strong gain in 2020. Investors had been fighting to get hold of the company's shares in the prior months due to a guidance upgrade. The company upgraded its guidance due to increasing demand for its products during the coronavirus pandemic.
The Avita Medical Ltd (ASX: AVH) share price dropped 8.8% lower last month. This was despite the regenerative medicine company releasing its quarterly update and revealing a 67% jump in third quarter revenue to $8.065 million. But with a market capitalisation of around $1 billion, investors may believe this level of revenue doesn't justify its current valuation.
The Insurance Australia Group Ltd (ASX: IAG) share price was a poor performer and fell 6.8% in April. Last month the insurance giant announced that its Managing Director and Chief Executive Officer, Peter Harmer, intends to retire by the end of 2020. The company's Chief Financial Officer Nick Hawkins will take on the role as Deputy CEO until a permanent replacement is found. One broker that doesn't believe this is an issue is Morgan Stanley. Late last month it upgraded its shares to an overweight rating with a $7.00 price target.
