Concerns over a spike in coronavirus cases weighed heavily on the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index fell a disappointing 2.3% to 5,919.2 points.
While a good number of shares dropped lower, some fell more than most. Here’s why these ASX 200 shares were the worst performers:
The Corporate Travel Management Ltd (ASX: CTD) share price was the worst performer on the ASX 200 last week with a 15.2% decline. Investors were selling travel shares last week after the outbreak of coronavirus in Melbourne sparked fears that the domestic travel market recovery could take longer than originally anticipated.
The Domain Holdings Australia Ltd (ASX: DHG) share price was out of form and dropped 12.5% last week. Once again, this appears to have been driven by the spike in coronavirus cases. Given how important the Melbourne market is to overall listing volumes, the six-week lockdown is likely to lead to a notable reduction in listings.
The AP Eagers Ltd (ASX: APE) share price wasn’t far behind with a 10.7% decline. This was despite there being no news out of the auto retailer last week. However, with its shares up more than 100% from their March low, investors may have been taking a bit of profit off the table. There may also be concerns that another outbreak could negatively impact near term car sales.
The Monadelphous Group Limited (ASX: MND) share price was a poor performer last week and fell 10.6%. This was also despite there being no news or broker notes relating to the engineering company. Investors may have concerns that the recent outbreak of coronavirus could weigh on its performance. In May the company advised that its Engineering Construction division experienced supply chain issues because of the pandemic. This was causing delays on large resources construction projects currently in progress, as well as a number of temporary deferrals to potential new construction contract award dates.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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