It certainly was a great month for the S&P/ASX 200 Index (ASX: XJO). The benchmark index recorded its eighth successive monthly gain when it rose 1.9% during May to end at 7,162.6 points.
Unfortunately, not all ASX 200 shares were able to follow the market’s lead. Here’s why these were the worst performers on the index last month:
EML Payments Ltd (ASX: EML)
The EML Payments share price was the worst performer on the ASX 200 in May with a whopping 41.9% decline. The catalyst for this was the payments company revealing that the Central Bank of Ireland had raised concerns over its 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. There are fears that the business could lose its financial service authorisation in the European market.
Perenti Global Ltd (ASX: PRN)
The Perenti Global share price wasn’t far behind with a disappointing 38.5% decline. Investors were selling the mining services company’s shares after the release of an operational update. That update revealed that Perenti will no longer be delivering on its guidance for second half revenue and margins in line with what it reported in the first half. Due largely to COVID-19 headwinds and Australian labour market shortages, the company is expecting softer earnings in the second half. Looking ahead, it warned that these headwinds are likely to persist for the next 12 to 18 months.
Nuix Ltd (ASX: NXL)
The Nuix share price was out of form again in May and sank 33.1%. This means the investigative analytics and intelligence software provider’s shares are now down 66% since the start of the year. Investors were selling the company’s shares amid concerns over its poor performance, potential legal action, and another guidance downgrade at the end of the month.
Costa Group Holdings Ltd (ASX: CGC)
The Costa share price was out of form and tumbled 20.9% during the month. The catalyst for this was the horticulture company’s annual general meeting update. That update revealed that Costa is only expecting its first half performance to be marginally ahead of the prior corresponding period due to weakness in its domestic operations. Morgans was particularly disappointed with the update. Its analysts note that the deterioration in its produce business profitability raises questions around how much Costa benefited from the pandemic-driven surge in food consumption a year earlier.