The S&P/ASX 200 Index (ASX: XJO) overcame a huge selloff on Wednesday to record a small gain last week. The benchmark index rose 16.1 points or 0.2% over the five days to end the period at 7,030.3 points.
Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performers on the ASX 200 last week:
EML Payments Ltd (ASX: EML)
The EML Payments share price was the worst performer on the ASX 200 by some distance with a 34.6% decline. Investors were selling the payments company’s shares after the Central Bank of Ireland raised concerns over EML Payments’ PFS Card Services Ireland business. The central bank’s concerns relate to Anti-Money Laundering/Counter Terrorism Financing compliance. Management notes that 27% of its total revenue goes through this business. The worst-case scenario could see the business lose its financial service authorisation in the European market.
The Kogan share price was out of form and sank 14% lower over the five days. All of this decline occurred on the final day of the week when the ecommerce company released a trading update. That update revealed that inventory issues, promotional activities, and cost inflation are weighing on its performance. As result, it expects to report adjusted EBITDA of $58 million to $63 million in FY 2021. This was well short of the market’s expectations of ~$70 million. Kogan’s guidance represents growth of just 16.7% to 27% on FY 2020’s adjusted EBITDA of $49.7 million. This compares to its first half EBITDA growth rate of 184.4%.
Monadelphous Group Limited (ASX: MND)
The Monadelphous share price wasn’t far behind with a decline of 10%. This was despite there being no news out of the mining and mining services company last week. One person that sees this as a buying opportunity is its director, Dietmar Voss. A change of director’s interest notice reveals that he picked up almost $300,000 worth of shares via on-market trades on 18 and 19 May.
Iluka Resources Limited (ASX: ILU)
The Iluka share price was a poor performer and tumbled 9.8% over the five days. The catalyst for this was the mineral sands company releasing an update on its Sierre Rutile operation. According to the release, the operation has been struggling recently. As a result, Iluka is planning to pause production later this year for six months. During the break, management will evaluate whether it can continue its operations in its current mining area. It also withdrew its production guidance of 145,000 tonnes of rutile for 2021.