The S&P/ASX 200 Index (ASX: XJO) had a month to forget in June. Rate hikes, recession fears, and rising inflation led to the benchmark index losing 8.9% of its value to finish at 6,568.1 points.
While a large number of shares fell with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 in June:
Zip Co Ltd (ASX: ZIP)
The Zip share price was the worst performer on the ASX 200 in June with a disappointing 52.2% decline. There were a number of catalysts for this buy now pay later (BNPL) provider’s share price collapse. One was news that tech giant Apple has announced the launch of its BNPL service. 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. In addition, weakness in the tech sector and concerns over rising interest rates weighed on Zip’s shares.
Lake Resources N.L. (ASX: LKE)
The Lake Resources share price had a terrible month and sank 49% lower during June. This was despite the lithium developer’s shares being added to the ASX 200 index during the period. Investors were selling the company’s shares following the sudden exit of its CEO. Not only did Steve Promnitz exit the company with immediate effect and without comment, he also promptly sold all of his 10.2 million shares the next day.
Novonix Ltd (ASX: NVX)
The Novonix share price wasn’t far behind with a 44.3% decline over the month. This was despite there being no news out of the battery technology company. Though, it is worth noting that a number of higher risk shares fell heavily during the month as investor sentiment soured. In addition, one of the company’s largest shareholders sold 7.6 million shares in the middle of the month.
St Barbara Ltd (ASX: SBM)
The St Barbara share price was sold off and dropped 40.9% during the month. This was driven by news that the gold miner has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review. St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation.