Strong gains in the tech sector helped drive the S&P/ASX 200 Index (ASX: XJO) notably higher last week. The benchmark index rose 153.8 points or 2.6% to end the period at 6057.9 points.
Unfortunately, not all shares were able to follow the market higher last week. Here's why these were the worst performers on the ASX 200 over the period:
The Adbri Ltd (ASX: ABC) share price was the worst performer on the ASX 200 last week with a 26.1% decline. Investors sold off the building materials company's shares on Friday after Alcoa of Australia decided not to renew its current lime supply contract when it expires at the end of June 2021. This means Alcoa is ending its almost 50-year relationship with Adbri, which was formerly known as Adelaide Brighton. And while this contract currently constitutes approximately $70 million or 4.6% of its annual revenue, investors appear concerned that others may also switch to cheaper imported products.
The Perenti Global Ltd (ASX: PRN) share price was some way behind with a disappointing 8% decline. This latest decline means the engineering company's shares are now down 22% over the last 30 days. Investors have been selling the mining services company's shares over the last few weeks after the release of a business update in June. Perenti advised that it expects FY 2020 underlying profit after tax to be $106 million to $110 million. This was a 4% to 8% reduction on its guidance that was withdrawn in March.
The Southern Cross Media Group Ltd (ASX: SXL) share price started the new financial year as it finished the last and fell 7.9%. This was despite there being no news out of the media company. The Southern Cross Media share price was the worst performer on the ASX 200 in the last financial year with a whopping 80.7% decline. Concerns that the coronavirus crisis could impact advertising revenues materially and a highly dilutive capital raising have weighed on its shares.
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price was out of form and dropped 6.2% lower last week. This decline appears to have been driven by an institutional investor selling down its stake. On Thursday Bennelong Australian Equity Partners offloaded the equivalent of a 4.4% stake in Reliance Worldwide. It went from an interest of 123,730,477 shares down to 81,524,354 shares.
