It was a good five days for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index rose 1.4% over the period to end at 7,420.3 points.
Unfortunately, not all shares climbed higher with the market. Here’s why these were the worst performing ASX 200 shares last week:
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price was the worst performer on the ASX 200 last week with a 27.8% decline. Investors were selling off the fund manager’s shares after it announced the termination of the St James’s Place mandate. The release notes that the mandate represents approximately 12% of the company’s current annual revenues. As a result, the termination of the mandate at this point in the financial year is anticipated to impact its FY 2022 revenues by 6%. Investors appear concerned more mandates could be lost, particularly given the abject performance of its flagship fund.
CIMIC Group Ltd (ASX: CIM)
The CIMIC share price was some way behind as the next worst performer with a 9% decline. This was despite the mining, construction and engineering services company announcing a $1.8 billion New South Wales government contract win for its subsidiary CPB Contractors. It is unclear what sparked the selling.
Bega Cheese Ltd (ASX: BGA)
The Bega share price was out of form and dropped 8.1% over the five days. Investors were selling the diversified food company’s shares after the release of underwhelming FY 2022 guidance. Bega provided guidance for normalised EBITDA in the range of $195 million to $215 million. While this will be an increase of 37% to 51% year on year, it was short of the market’s expectations. The Bloomberg consensus estimate was $222 million.
Charter Hall Group (ASX: CHC)
The Charter Hall share price wasn’t far behind with a 7% decline. This follows news that the property company is acquiring a 50% interest in Paradice Investment Management (PIM). Charter Hall advised that it will pay $207 million for the stake. This comprises 70% in shares and 30% in cash. PIM is a fund manager with around $18.2 billion in funds under management. It appears as though some investors are keen on the move.
The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.
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More reading
- These were the best performing ASX 200 shares last week
- Here are the top 10 ASX shares today
- The Magellan (ASX:MFG) share price is now up 11% in 3 days. What’s going on?
- The ASX share market coverage that captivated readers in 2021
- ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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