The S&P/ASX 200 Index (ASX: XJO) was on form again last week and continued its remarkable rise. The benchmark index rose 1% over the five days to 6,601.1 points.
Unfortunately, not all shares on the index climbed higher with the market. Here’s why these were the worst performers on the ASX 200 last week:
Virgin Money UK CDI (ASX: VUK)
The Virgin Money UK share price was the worst performer on the ASX 200 last week with a 12.6% decline. Investors were selling the UK bank’s shares following the release of its full year results. For the 12 months ended 30 September, Virgin Money UK posted a 77% decline in full year underlying net profit to 124 million pounds. This was driven largely by a material increase in impairments to 501 million pounds. Excluding impairments, operating profit fell 10% to 625 million pounds due to weakening margins and base rate cuts.
Megaport Ltd (ASX: MP1)
The Megaport share price was out of form and dropped 9.7% last week. The elastic interconnection services provider’s shares appear to have been caught up in the rotation from COVID winners to value options. Despite this decline, the Megaport share price is up an impressive 30% over the last 12 months. This has been driven by strong recurring revenue growth thanks to increasing demand for its service because of the cloud computing boom.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price continued its poor run and dropped a further 8.4% over the five days. This means the gold miner’s shares are now down 18.6% over the last 30 days. Investors were selling the company’s shares last week after positive COVID-19 vaccine news continued to weigh on the gold price. For the same reason, the Saracen Mineral Holdings Limited (ASX: SAR) share price dropped 8.1%.
Pro Medicus Limited (ASX: PME)
The Pro Medicus share price wasn’t far behind with a decline of 6.8%. Last week this healthcare technology company held its annual general meeting. Although management spoke positively about its outlook, it did warn that its growth would be predominantly generated in the second half. This appears to have spooked some investors.
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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's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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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