The S&P/ASX 200 Index (ASX: XJO) was on form in January and pushed higher. The benchmark index rose 1.8% over the month.
Not all ASX 200 shares climbed with the market. For example, the shares listed below all fell heavily during the month. Let's find out why they were the worst performers on the ASX 200 in January:
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Zip Co Ltd (ASX: ZIP)
The Zip share price was the worst performer on the index with a decline of 19%. This was despite there being no news out of the buy now pay later (BNPL) provider. Not even a bullish broker note out of Citi was able to stop the rot. Its analysts put a buy rating and $4.30 price target on its shares. The broker notes that app downloads hit record highs in the US during December, which bodes well for its transaction growth in the massive market. There was even positive news for the BNPL industry, with Donald Trump suggesting that he would put caps on credit card interest rates. This could lead to tighter lending from credit card providers, pushing people into BNPL services.
Life360 Inc. (ASX: 360)
The Life360 share price wasn't far behind with a decline of 18% in January. This appears to have been driven by a broad tech selloff which dragged down the location technology company's shares despite a very strong quarterly update which smashed expectations. For the same reasons, the shares of cloud accounting platform provider Xero Ltd (ASX: XRO) also dropped 18% during the month.
ARB Corporation Ltd (ASX: ARB)
The ARB share price was sold off and dropped 18% during the month. Investors were hitting the sell button after the 4×4 automotive parts company released a trading update. ARB revealed that unaudited sales revenue for the first half was $358 million, which was down 1% on the prior corresponding period. Things were worse for its earnings because of margin pressures. ARB expects to report underlying profit before tax of approximately $58 million for the half. This represents a 16.3% decline compared with the prior year.
Pro Medicus Ltd (ASX: PME)
The Pro Medicus share price was out of form and dropped 16.5%. This health imaging technology company's shares appear to have been caught up in the tech selloff. Not even a bullish broker note out of Macquarie could prevent this decline. Its analysts upgraded Pro Medicus' shares to an outperform rating with a $291.30 price target.
