June was a rough month for the Webjet Limited (ASX: WEB) share price. The online travel agencyâs stock slumped 10.55% last month for no obvious reason.
After finishing May at $5.97, the Webjet share price was trading at$5.35 as of the final close of June.
For context, the S&P/ASX 200 Index (ASX: XJO) slumped 8.9% last month while many of Webjetâs ASX 200 travel peers also suffered.
So, what dragged on many ASX travel giants last month? Letâs take a look.
Why did the Webjet share price plunge 11% in June?
The Webjet share price struggled last month. Though, it ultimately outperformed many other ASX 200 travel shares.
The share price of Qantas Airways Limited (ASX: QAN), for instance, tumbled nearly 19% in June. Meanwhile, that of Flight Centre Travel Group Ltd (ASX: FLT) slumped 15%.
However, unlike the above-mentioned stocks, Webjet was silent last month.
In fact, the last time the market heard from the company was back in May when it announced it returned to profit in the second half.
So, what weighed on Webjet’s share price might be the same happening that seemingly dragged on the broader market last month. And that was inflation and interest rates.
The Reserve Bank of Australia hiked interest rates by 0.5% in June, sending the cash rate to 0.85% in a bid to tackle inflation.
That likely had many Australiansâ pockets feeling lighter and potentially impacted sentiment for travel stocks.
On top of that, Webjet remained one of ASXâs most shorted shares throughout June.
The company had a short position of 7.85% as of 28 June. That basically means 7.85% of its register is betting against its recovery.
Despite the Webjet share price’s poor June performance, the stock has been outperforming the ASX 200 lately. It has slipped just 1.2% this year while the index is recording a 12.5% year-to-date tumble.
The post Why did the Webjet share price fall 11% in June? appeared first on The Motley Fool Australia.
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More reading
- These are the 10 most shorted ASX shares
- How did ASX travel shares perform in June?
- ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals
- Here’s why I think the Webjet share price could fly higher in 2022
- Here are the top 10 ASX shares today
Motley Fool contributor Brooke Cooper 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 recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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