It was another strong month for the S&P/ASX 200 Index (ASX: XJO). Investors were piling into shares again after economies around the world started to reopen.
This drove the benchmark index 4.2% higher for the month, ending it at 5,755.7 points.
Not all shares were able to follow the market higher last month. Here's why these were the worst performers on the ASX 200 in May:
The Incitec Pivot Ltd (ASX: IPL) share price was the worst performer on the ASX 200 in May with a 15.9% decline. Investors were selling the chemicals company's shares after it announced a $600 million capital raising with its half year results. These funds were raised at $2.00 per new share, which represented an 8.7% discount to its last close price at the time.
The Alumina Limited (ASX: AWC) share price was out of form and fell 14.9% last month. This decline appears to have been caused by a broker note out of Credit Suisse. According to the note, the broker downgraded Alumina's shares from an outperform rating to a neutral rating. It made the move after reducing its alumina price forecasts.
The New Hope Corporation Limited (ASX: NHC) share price wasn't far behind with a 12.9% decline. A good portion of this decline came on the final trading day of the month after brokers responded negatively to its third quarter update. That update revealed a 22% decline in saleable coal production compared to the prior corresponding period. One broker that wasn't impressed was Macquarie. It has an underperform rating and $1.30 price target on the coal miner's shares.
The CSL Limited (ASX: CSL) share price was out of form and fell 10.7% last month. This appears to have been driven by profit taking after a strong gain over the last 12 months. Also potentially weighing on its shares are concerns over its plasma collections because of the pandemic. Any meaningful disruption to its collections could have impact on its FY 2021 performance.
