Last week the S&P/ASX 200 Index (ASX: XJO) was on course to record a very strong gain until a broad market selloff on Friday wiped out almost all its weekly gains. The benchmark index ended up recording a 0.1% rise to 5245.9 points.
A number of shares acted as drags on the market last week. Here's why these were the worst performing ASX 200 shares:
The Newcrest Mining Limited (ASX: NCM) share price was the worst performer last week with a 11.4% decline. Newcrest and its fellow gold miners were sold off on Friday after a market selloff put pressure on all areas of the market. In addition to this, investors were selling Newcrest's shares after it completed its fully underwritten $1 billion institutional placement. It raised the funds at a 7% discount of $27.54 per new share. The proceeds of its capital raising will be used to purchase the Fruta del Norte financing facilities and fund future growth options. Elsewhere, the likes of Gold Road Resources Ltd (ASX: GOR), Northern Star Resources Ltd (ASX: NST), and countless other fell hard last week. The majority of the declines came on Friday, which led to a daily decline of 7.8% for S&P/ASX All Ordinaries Gold index.
The Austal Limited (ASX: ASB) share price was the next worst performer (excluding the gold miners) with an 8.2% decline. The ship builder was on course for a very strong gain last week before crashing 20% lower on Friday. Investors were selling its shares after it was overlooked for a major U.S. Navy project. Austal was in a four-way competition to construct Guided-Missile Frigates, but was pipped to the post by Italian rival, Fincantieri. According to Reuters, the 10-ship contract is believed to be worth upwards of US$5.5 billion.
The Charter Hall Long WALE REIT (ASX: CLW) share price was out of form and fell 6.3% last week. This decline all came on Friday when investors indiscriminately sold off equities and particularly REITs. The Charter Hall Long WALE REIT share price is now down 41.5% from its 52-week high of $6.02.
The Coles Group Ltd (ASX: COL) share price was a poor performer and dropped 5.7% last week. Investors were selling the supermarket giant's shares following the release of its third quarter update. Thanks to strong performances by its Supermarkets and Liquor divisions, Coles recorded third quarter sales revenue of $9.2 billion. This was an increase of 12.9% on the prior corresponding period. However, management warned that it expects an elevated cost base in the fourth quarter as a result of the additional investment it is making as a result of COVID-19.
