These were the worst 3 ASX All Ordinaries shares to hold during the March quarter

Luxury online retailers and BNPL shares have come under pressure in the new year.

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Key points
  • Overall ASX All Ordinaries shares finished the quarter flat 
  • The spectre of rising interest rates threw up headwinds for BNPL shares 
  • Online luxury retailers could be looking at fast changing consumer spending habits 

Like most every global index, the All Ordinaries Index (ASX: XAO) struggled during the March quarter, with ASX All Ordinaries shares finishing the three months up a slim 0.1%.

That came after a very strong 2021, which saw the All Ords gain 14% over the year.

While some companies enjoyed a very good quarter (click here to see the best ASX performers), others struggled amid the spectre of rising interest rates and geopolitical uncertainty, atop their own company specific woes.

Below we look at the three worst ASX All Ordinaries shares to have held during the March quarter.

You'll note it was a very tight race to the bottom.

asx 200 shares downgraded represented by three fingers with sad and angry faces

Image source: Getty Images

The third worst ASX All Ordinaries performer of the quarter

Coming in at number three is Zip Co Ltd (ASX: Z1P), which finished the March quarter down 66%.

The ASX All Ordinaries share operates in the buy now, pay later (BNPL) space. It was a market darling during the 11 months following the post pandemic fire sale lows, gaining 872% from 20 March 2020 through to 19 February 2021.

Unfortunately for Zip shareholders, it's been largely downhill since. With the losses from the March quarter and the past week factored in, the Zip share price is now only 11% above the 20 March 2020 low.

The All Ordinaries share has come under pressure alongside others in the BNPL space as fast rising inflation figures point to some significant interest rate hikes ahead. High rates may be good news for the banks, but they appear to be a significant headwind for BNPL shares.

Zip's shares continued to decline in March following a capital raising carried out to acquire fellow ASX BNPL share, Sezzle Inc (ASX: SZL).

The second worst performer during the quarter

The second worst ASX All Ordinaries share to have held during the quarter just past is Laybuy Group Holdings Ltd (ASX: LBY) 67%.

Laybuy's BNPL payment platform allows customers to split paying for their purchases across six, weekly, interest free instalments.

But as with Zip and other BNPL shares, Laybuy doesn't make a profit, it doesn't pay any dividends, and with interest rates across the globe set to rise, its business model will face additional headwinds.

Zip shares hit all-time highs of $12.25 on 19 February 2021. Since then, the ASX All Ordinaries share is down 89%.

And that brings us to…

The worst ASX All Ordinaries share to have held during the March quarter

While it was a tight race, Cettire Ltd (ASX: CTT) takes the inglorious honour, with shares down 68% over the three months.

The online luxury goods retailer was a beneficiary of COVID lockdowns, which drove a surge in online retail purchases across the board.

Luxury goods are also more prone to catch the headwinds of rising interest rates. This saw the ASX All Ordinaries share come under increasing pressure over the quarter, as investors mull a world where rates no longer hover near zero.

The Cettire share price dropped again sharply on 23 March on news that the company's founder, Dean Mintz was selling 35 million shares.

Cettire was trading at a record closing high of $4.75 per share on 16 November last year. Since then, the ASX All Ordinaries share has lost a painful 79%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Cettire Limited and ZIPCOLTD FPO. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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