It was a disappointing five days for the S&P/ASX 200 Index (ASX: XJO) last week. Over the period the benchmark index fell 0.6% to end the period at 6,715.4 points.
While a good number of shares dropped lower, some fell more than most. Here’s why these were the worst performing ASX 200 shares last week:
The PolyNovo share price was the worst performer on the ASX 200 last week by some distance with a 28% decline. Investors were selling the medical device company’s shares following the release of a trading update. During the first half, PolyNovo delivered a 31% increase in sales. While this is strong growth, it fell well short of expectations due to a weak second quarter. Bell Potter commented: “Polynovo announced a relatively disappointing trading update, with 1H FY21 sales growth of 31% vs the pcp well below our forecasts, consensus and management expectations.”
Resolute Mining Limited (ASX: RSG)
The Resolute share price was the next worst performer with a 15.1% weekly decline. The majority of this came on Friday following the release of a disappointing production update. For the three months ended 31 December, Resolute achieved gold production of 89,888 ounces. This led to its calendar year production coming in at 395,136 ounces, which fell short of its downgraded guidance of 400,000 ounces. In 2021, management expects production to fall to between 350,000 to 375,000 ounces.
Westgold Resources Ltd (ASX: WGX)
The Westgold Resources share price was out of form last week and dropped 9.8%. This appears to have been driven by weakness in the gold price last week after bond yields widened. It wasn’t just Westgold Resources dropping lower. The S&P/ASX All Ordinaries Gold index lost almost 5% of its value during the five days.
Altium Limited (ASX: ALU)
The Altium share price was a poor performer and tumbled 9.7% lower over the week. The electronic design software provider’s shares came under pressure following the release of its guidance for the first half. Altium revealed that it expects to deliver revenue of around US$89.6 million for the half, which will be a drop of 3% on the prior corresponding period. Management advised that COVID-19 lockdowns have been impacting its sales and led to declines in the United States and Europe. However, it is worth noting that Altium is expecting a much stronger second half and has retained its full year guidance.
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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 Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.