The S&P/ASX 200 Index (ASX: XJO) was a positive performer in March. The benchmark index recorded a 1.8% gain to end the period at 6,790.7 points.
Unfortunately, not all shares on the index were able to climb higher with the index. Here's why these were the worst ASX 200 performers in March:
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Resolute Mining Limited (ASX: RSG)
The Resolute Mining share price was the worst performer on the ASX 200 in March with a 32% decline. Investors were selling the gold miner's shares after the Ghanaian government terminated its Bibiani Gold Mine licence. As a result, Resolute has been advised to cease all activities and operations at the site. This is particularly bad timing as the company was in the process of selling the asset to Chifeng Jilong Gold Mining for US$105 million. Investors may be concerned that a capital raising will be required if the sale doesn't go through.
Zip Co Ltd (ASX: Z1P)
The Zip share price wasn't far behind with a decline of 29% last month. This decline appears to have been driven by weakness in the tech sector due to concerns over rising bond yields. In addition to this, a broker note out of UBS weighed on the buy now pay later provider's shares. UBS downgraded Zip's shares to a sell rating with a $6.40 price target. For similar reasons, the Afterpay Ltd (ASX: APT) share price fell 15%.
Kogan.com Ltd (ASX: KGN)
The Kogan share price was out of form and tumbled 14.2% last month. This was despite there being no news out of the ecommerce company. However, as mentioned above, rising bond yields put a lot of pressure on the tech sector last month. This appears to have weighed on the Kogan share price and sent many investors to the exits.
A2 Milk Company Ltd (ASX: A2M)
The a2 Milk share price was out of form again last month and dropped 12.9% lower. Investors have been selling the infant formula company's shares in recent months due to a series of guidance downgrades and its weak outlook. This is being caused largely by weakness in the daigou channel. In addition to this, last month Citi put out a bearish broker note, which had a sell rating and $7.15 price target on its shares.
