The S&P/ASX 200 Index (ASX: XJO) was out of form and dropped deep into the red last week. The benchmark index fell 4.2% to end the period at 6,932 points.
While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performing ASX 200 shares:
Zip Co Ltd (ASX: ZIP)
The Zip share price was the worst performer on the ASX 200 last week with a 20.3% decline. Investors were selling Zip and other buy now pay later (BNPL) shares after tech giant Apple announced the launch of its BNPL service. Apple Pay Later will allow users to split the cost of an Apple Pay purchase into four equal payments with no interest. The service works with any merchant that already supports Apple Pay and does not require a new payments terminal. This means that merchants don’t even need to offer BNPL for consumers to transact with them with this payment method.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price wasn’t far behind and tumbled 17.8% lower during the period. There were a couple of catalysts for this weakness. The first was the release of another disappointing monthly update which revealed a further sizeable decline in funds under management. The other catalyst was news that the company has been dumped from the ASX 100 index.
PointsBet Holdings Ltd (ASX: PBH)
The PointsBet share price was out of form and dropped 16.5% over the five days. Investors were selling the sports betting company’s shares amid weakness in the tech sector. This led to the S&P ASX All Technology index losing 5.2% of its value last week. Loss-making tech shares like PointsBet were hardest hit.
Chalice Mining Ltd (ASX: CHN)
The Chalice Mining share price was a poor performer and tumbled 16.3% last week. Broad market weakness appears to have been weighing on this mineral exploration company’s shares. Not even the company’s appearance at the Resources Rising Stars Conference or some insider buying could stop its shares from falling.