Although the S&P/ASX 200 Index (ASX: XJO) was back on form on Monday and stormed higher, not all shares were able to climb higher with it.
In fact, some ASX shares not only dropped lower, they dropped to 52-week lows or worse.
Here's why these ASX shares are down in the dumps right now:
AGL Energy Limited (ASX: AGL)
The AGL Energy share price dropped to a multi-year low of $14.68 on Monday. The energy company's shares have been sold off this year after a disappointing performance in FY 2020 and weak guidance for the 12 months ahead. AGL Energy reported an underlying profit after tax of $816 million for FY 2020. This was a 22% decline on the prior corresponding period. Looking ahead, another sizeable decline in profits is expected in FY 2021. Management has provided underlying profit after tax guidance of $560 million and $660 million this year.
Insurance Australia Group Ltd (ASX: IAG)
The IAG share price tumbled to a multi-year low of $4.62 yesterday. The insurance giant's shares have come under significant selling pressure this year after a terrible performance in FY 2020. For the 12 months ended 30 June 2020, IAG reported a 49.6% decline in net profit from continuing operations to $439 million. This was driven by the material narrowing in its insurance margins and forced the suspension of its dividend. Judging by its share price decline, I suspect the market believes the worst is not over for IAG.
Laybuy Holdings Ltd (ASX: LBY)
The Laybuy share price crashed to a new low of $1.48 on Monday. This means the newly listed buy now pay later provider's shares are now trading within touching distance of their IPO price of $1.41. This is significantly lower than the high of $2.30 it reached on its first day of trade. A number of buy now pay later shares have come under pressure this month after PayPal announced its plan to enter the lucrative market with its Pay in 4 product. There are concerns that this could stifle the growth of some of the smaller players.
