The 5 worst performing ASX 200 shares of 2020

What a year it was for the S&P/ASX 200 Index (ASX: XJO) in 2020. The benchmark index lost 1.4% of its value over the 12 months to end it at 6,587.1 points.

But it could have been so much worse. At the height of the pandemic the index had lost a third of its value.

Unfortunately, not all shares on the index rebounded as strongly and some recorded very disappointing declines.

Here’s why these were the worst performing ASX 200 shares of 2020:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was the worst performer on the ASX 200 in 2020 with a 60% decline. With the pandemic bringing both domestic and international travel to a standstill earlier this year, this travel agent giant’s bookings collapsed to previously unthinkable levels. So with little to no revenue coming in, Flight Centre was forced to raise funds to keep its operations going. Significant cost cutting means that its cash burn has reduced materially, but recent COVID outbreaks in Australia have sparked fears that its recovery could take a bit longer than hoped.

Unibail-Rodamco-Westfield CDI (ASX: URW)

The Unibail-Rodamco-Westfield share price wasn’t far behind and crashed 54.4% lower in 2020. The shopping centre operator is another company that was impacted negatively by the pandemic. Lockdowns, social distancing initiatives, and the shift to online shopping, meant that the company’s shopping centres were like ghost towns for much of 2020. This put a lot of pressure on rental collections and occupancy rates.

IOOF Holdings Limited (ASX: IFL)

The IOOF share price was out of form in 2020 and sank 51.4% lower. This financial services company’s shares came under pressure for a couple of reasons. One was its $1,040 million capital raising, which was undertaken at a 24.4% discount (at the time) of $3.50. This was launched to fund the acquisition of the National Australia Bank Ltd (ASX: NAB) wealth business, MLC Wealth for $1,440 million. Also weighing on its shares was its poor performance in FY 2020. IOOF reported a 34.9% decline in underlying net profit after tax to $128.8 million.

Oil Search Ltd (ASX: OSH)

The Oil Search share price was a poor performer and dropped 47.5% over the 12 months. Investors were selling this energy producer’s shares last year after oil prices collapsed amid demand concerns. Incredibly, at one stage in 2020 oil futures were actually in negative territory, which meant buyers were being paid to take oil off their hands. And while prices have been recovering in recent months, it hasn’t been enough to drive the Oil Search share price back to previous levels.

Webjet Limited (ASX: WEB)

The Webjet share price wasn’t far behind with a 46.4% decline in 2020. As with Flight Centre, this decline was driven by the pandemic’s impact on travel markets and the company’s need for a cash injection to keep it afloat. The good news for Webjet is that it looks set to come out of the crisis in a stronger market position and has seen its bookings recover twice as quickly as the market average.

More reading

• The ASX sectors hardest hit by COVID-19 in 2020
• ASX 200 drops 1.4%
• 2020 ASX recap of the year we’ll never forget
• Cimic (ASX:CIM) share price wobbles on $2.2 billion sale news
• Here’s how the S&P/ASX All Technology Index fared in 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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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