It was another good month for the S&P/ASX 200 Index (ASX: XJO) in August. The benchmark index recorded its 11th consecutive monthly gain with a 1.9% rise to 7,534.9 points.
Unfortunately, not all ASX 200 shares climbed higher with the market last month. Here’s why these were the worst performing ASX 200 shares in August:
Champion Iron Ltd (ASX: CIA)
The Champion Iron share price was the worst performer in August with a decline of 22.5%. Investors were selling the Canadian iron ore producer’s shares after the price of the steel making ingredient dropped materially. Concerns over steel production curbs in China and rising supply have been weighing on prices.
Rio Tinto Limited (ASX: RIO)
The Rio Tinto share price was out of form last month and tumbled 16% lower over the period. There were a couple of catalysts for this share price decline. One was the aforementioned weakness in the iron ore price, the other was the mining giant’s shares going ex-dividend in August for its interim and special dividends. Rio Tinto is paying its shareholders fully franked dividends totalling 760.06 cents per share. This comprises an interim dividend of 509.42 cents per share and a special dividend of 250.64 cents per share.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price wasn’t far behind with a decline of 15.7% in August. Once again, weakness in the iron ore price and a widening discount for low grade ore weighed on its shares. In addition to this, the mining giant was the subject of a number of bearish broker notes. Goldman Sachs, Morgan Stanley, and Morgans all have the equivalent of sells ratings on the mining giant’s shares.
Boral Limited (ASX: BLD)
The Boral share price was out of form and sank 15% over the month. This building products company’s shares have been on a downward trajectory since Seven Group Holdings Ltd (ASX: SVW) completed its takeover bid with a holding of ~70%. In addition, Boral’s full year results fell short of expectations last month. It also revealed that the quarterly impact of lockdowns will be ~$50 million.