The S&P/ASX 200 Index (ASX: XJO) wasn’t able to repeat the heroics of the previous week and dropped lower last week amid U.S. COVID-19 stimulus uncertainty. The benchmark index fell 9.8 points or 0.2% to 6,167 points.
Four shares that fell more than most last week are listed below. Here’s why they were the worst performers on the ASX 200:
Iluka Resources Limited (ASX: ILU)
The Iluka share price was the worst performer on the ASX 200 last week with a massive 47.2% decline. However, this decline relates to the demerger of its Deterra Royalties (ASX: DRR) business and nothing untoward. Eligible shareholders received 1 Deterra Royalties share for every Iluka share they own. The Deterra Royalties share price ended the week at $4.60, which offset most of the $4.78 decline in the Iluka share price.
Resolute Mining Limited (ASX: RSG)
The Resolute share price was out of form and sank 11.5% lower last week. Investors were selling the gold miner’s shares after the release of a disappointing third quarter update. Resolute’s production was down notably quarter on quarter and its costs jumped meaningfully higher. In light of this, management expects its full year production to be at the low end of its guidance range and its costs to be at the high end.
Megaport Ltd (ASX: MP1)
The Megaport share price wasn’t far behind with an 11.2% decline over the five days. The catalyst for this decline was the elastic interconnection services provider’s first quarter update. Investors appear to have been disappointed with its slower than normal revenue growth. However, the company did report strong growth port numbers during the quarter. This is a leading indicator for growth, which could mean Megaport bounces back in the second quarter.
GrainCorp Ltd (ASX: GNC)
The GrainCorp share price was a poor performer and dropped 10% last week. This was despite there being no news out of the grain producer. However, its shares were up 8% month to date prior to the start of the week. Some investors may have decided to take a bit of profit off the table.
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Returns as of 6th October 2020
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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