The S&P/ASX 20 Index (ASX: XTL) comprises the 20 biggest companies on the Australian Securities Exchange. While the concentrated index performed solidly over the past year, returning 26.9% before dividends – not all of its constituents enjoyed the same performance.
In light of this, we take a moment to evaluate the three worst-performing shares in the ASX 20 over the past year.
Heading off road
Although it has inched out a positive return over the past year, Transurban Group (ASX: TCL) is still the third-worst performing share of the ASX 20. The Australian and United States toll road operator has climbed 6.3% during the past 12 months.
Looking at the 1-year chart, we can see that shareholders have endured a bumpy ride during the period. It appears the share price took a hit during November and December. Around this time the company provided a traffic update, indicating traffic had increased during October and November despite the ongoing impacts of COVID-19.
However, in February Transurban released its first-half results for FY21. These results informed investors of a 16.6% fall in revenue to $1,165 million and a 17.8% decrease in average daily traffic across its portfolio.
Volatility for this ASX 20 share
COVID-19 has produced headwinds for the Australian-based biotherapeutics giant. Firstly, plasma collections have been impacted by restrictions induced by the pandemic. CSL relies on these collections for many of its leading therapies.
Secondly, the company’s growth in treatment sales has been tempered by a reduction in doctor visits.
More recently, investors may have become concerned about a leading broker’s take on CSL’s Seqirus vaccine business. According to Goldman Sachs, the rapid development of new vaccines using mRNA could disrupt the company’s seasonal flu market in the future.
Not so golden performance
Finally, the worst-performing share in the ASX 20 Index is gold mining company – Newcrest Mining Ltd (ASX: NCM). The $21 billion miner wiped nearly 23% off its share price in the past year.
In short, Newcrest is the victim of the falling gold price. The value of the precious commodity has tarnished ~7% since this time last year. However, Newcrest has managed to increase both its revenue and earnings during this time.
According to its FY21 half-year results, revenue jumped 21% to $2,172 million compared to the prior corresponding period. Additionally, statutory profit skyrocketed 134% to $553 million.