The S&P/ASX 200 Index (ASX: XJO) was on form last week and recorded a solid 1.6% gain to end at 5942.6 points.
Unfortunately, not all shares on the index were able to follow the market higher last week. Here’s why these shares were the worst performers on the ASX 200:
The Pilbara Minerals Ltd (ASX: PLS) share price was the worst performer on the ASX 200 last week with a 14.5% decline. The lithium miner’s shares crashed lower ahead of its exclusion from the benchmark index on Monday at the June quarterly rebalance. Index tracking exchange traded funds and fund managers with strict investment mandates were potentially selling its shares.
The Mayne Pharma Group Ltd (ASX: MYX) share price wasn’t far behind with a 13.6% decline. As with Pilbara Minerals, this decline appears to have been driven by the pharmaceutical company’s exclusion from the ASX 200. Heading into the index at next week’s rebalance will be the likes of Megaport Ltd (ASX: MP1) and Mesoblast limited (ASX: MSB).
The Orora Ltd (ASX: ORA) share price was out of form and fell 12.2% last week. All of this decline came on Friday when the packaging company’s shares traded ex-dividend for its massive special dividend. Eligible Orora shareholders will receive its 37.3 cents per share dividend in their bank accounts on 29 June 2020. This dividend was the equivalent of a 15% yield based on its last close price. It was declared following the sale of Orora’s fibre business to Nippon Paper.
The Fortescue Metals Group Limited (ASX: FMG) share price was some distance behind with a decline of 6.9%. This appears to have been driven by a spot of weakness in the iron ore price and profit taking after a strong gain in 2020. Even after last week’s decline, Fortescue’s shares are up 28% since the start of the year.