It was another positive month for the S&P/ASX 200 Index (ASX: XJO) in July. The benchmark index pushed a solid 1.1% over the period to end it at 7,392.6 points.
Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performing ASX 200 shares in July:
Crown Resorts Ltd (ASX: CWN)
The Crown share price was the worst performer on the ASX 200 last month with a disappointing 27.8% decline. Investors were selling the casino and resorts operator’s shares amid concerns that it could lose its Melbourne casino licence and the collapse of merger talks with Star Entertainment Group Ltd (ASX: SGR). The rival casino and resorts operator advised that it was walking away from merger talks due to too much uncertainty.
PolyNovo Ltd (ASX: PNV)
The PolyNovo share price was the next worst performer with a sizeable 20.2% decline in July. Investors were selling the medical device company’s shares following the release of a sales update for FY 2021. That update fell short of expectations and led to a couple of leading brokers downgrading its shares. Both Bell Potter and Ord Minnett downgraded the company’s shares to hold ratings and cut their price targets. Bell Potter’s price target was reduced to $2.65 and Ord Minnett’s price target was taken down to $2.54.
Afterpay Ltd (ASX: APT)
The Afterpay share price was a surprisingly poor performer during July and crashed 18.2% lower. This appears to have been driven by concerns over increasing competition in the buy now pay later (BNPL) industry. This follows news that PayPal is removing its BNPL late fees and rumours of Apple planning to launch a new service called Apple Pay Later. The tech behemoth reportedly sees it as a way to boost Apple Pay transactions, giving its US$50 billion a year services business a lift.
Platinum Asset Management Ltd (ASX: PTM)
The Platinum share price was out of form and sank 16.7% during the month. This appears to have been driven by the release of another disappointing funds under management update. That update revealed another decline in Platinum’s funds under management during the month of June. In addition to this, the fund manager advised that it expects to generate performance fees of just $0.3 million for the second half. Credit Suisse responded by putting an underperform rating and $4.50 price target on its shares. It notes that Platinum has now recorded 30 months of fund outflows in a row.