The S&P/ASX 200 Index (ASX: XJO) was out of form last week and tumbled notably lower. The benchmark index ended the week 1.6% lower than where it started it at 5,927.8 points.
Four shares that fell more than most are listed below. Here’s why they were the worst performers on the ASX 200 index last week:
The IOOF Holdings Limited (ASX: IFL) share price was the worst performer on the ASX 200 last week with a 16% decline. Investors were selling the fund manager’s shares after the release of its fourth quarter update. During the quarter IOOF’s funds under management, advice and administration (FUMA) grew to $202.3 billion. This represents a quarterly increase of $6.7 billion or 3.4%. However, taking the shine off its FUMA update was its earnings commentary. IOOF advised that it expects to report an underlying net profit after tax of approximately $128 million to $130 million in FY 2020. This will be a ~35% decline from the $198 million it reported a year earlier.
The Sandfire Resources Ltd (ASX: SFR) share price wasn’t far behind with a 15.5% decline. Investors were selling the copper producer’s shares after a strong four quarter update was overshadowed by underwhelming guidance for FY 2021. A very positive fourth quarter led to full year copper production coming in at 72,238 tonnes and gold production totalling 42,263 ounces. This was achieved with C1 costs of 72 U.S. cents per pound. However, next year management expects copper production to reduce to between 67,000 and 70,000 tonnes and gold production to reduce to 36,000 to 40,000 ounces. But even worse, management is expecting its C1 costs to increase at least 25% to between 90 U.S. cents and 95 U.S. cents.
The IGO Ltd (ASX: IGO) share price was out of form and fell 15.1% over the period. The nickel producer’s shares came under significant pressure after its guidance for FY 2020 fell short of expectations. IGO expects its revenue to be $892.4 million and its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at $459.6 million. The latter falls well short of the market’s expectations. Analysts at Macquarie, for example, were expecting EBITDA of $530 million.
The AMP Limited (ASX: AMP) share price crashed a disappointing 14.3% lower last week. This follows the release of an update on its expectations for the first half of FY 2020. The struggling financial services company revealed that it expects to report underlying profit from retained businesses in the range of $140 million to $150 million. This was below the market’s expectations and due to a range of negative factors including market volatility and a credit loss provision in AMP Bank.