Despite a disappointing finish to the month, the S&P/ASX 200 Index (ASX: XJO) recorded a 0.5% gain to end it at 5927.8 points.
Unfortunately, not all shares on the index were climbing higher with the market in July. Here's why these were the worst performing ASX 200 shares during the month:
The AVITA Therapeutics Inc (ASX: AVH) share price was the worst performer on the ASX 200 last month with a 32.5% decline. Investors were selling the regenerative medicine company's shares following the release of its fourth quarter and full year sales update. For FY 2020, AVITA's total revenue came in at approximately US$14.32 million. Although this was a 160% increase over FY 2019's sales, it appears as though investors were expecting an even stronger sales result.
The Adbri Ltd (ASX: ABC) share price wasn't far behind with a 30.5% decline. The catalyst for this decline was news that Alcoa of Australia will not be renewing its lime supply contract when it expires at the end of June 2021. This agreement has been ongoing for decades and appears to have sparked fears that other customers may switch to lower cost imports as well. The news didn't go down well with brokers. This was particularly the case with UBS, which downgraded its shares all the way from a buy rating to a sell with a reduced price target of $2.00. The Adbri share price ended the month at $2.21.
The AMP Limited (ASX: AMP) share price was out of form and sank 21.5% lower in July. The majority of this decline came on the final day of the month when the financial services company revealed that the coronavirus had impacted its performance in FY 2020. According to AMP's first half update, 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 driven by market volatility and a credit loss provision in AMP Bank.
The IDP Education Ltd (ASX: IEL) share price was a poor performer and crashed 19.8% lower last month. Investors were selling the shares of the provider of international student placement services and English language testing services due to a spike in coronavirus cases. They appear concerned that this recent spike both at home and globally could impact the company's performance greatly in FY 2021.
