Last week was a tough one for the S&P/ASX 200 Index (ASX: XJO). The benchmark index lost 2.9% over the five days to end at 5,791.5 points.
While a number of shares dropped lower with the market last week, some stood out with particularly large declines.
Four shares that tumbled notably lower last week are listed below. Here’s why they were the worst performers on ASX 200 over the period:
Mesoblast limited (ASX: MSB)
The Mesoblast share price was the worst performer on the ASX 200 last week by some distance with a sizeable 35% decline. Investors were hitting the sell button on Friday after the biotechnology company revealed that the US FDA has not approved its remestemcel-L (RYONCIL) treatment for paediatric patients with steroid-refractory acute graft versus host disease (SR-aGVHD). Instead, the FDA has requested that Mesoblast undertake at least one additional randomised, controlled study in adults and/or children. This is to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price was well and truly out of form last week with an 18.5% decline. Investors were selling the infant formula and fresh milk company’s shares after it updated its outlook for FY 2021. According to the release, a2 Milk has been experiencing weakness in the daigou channel following lockdowns and international travel restrictions. As a result, management expects its first half sales to be down 3.9% to 10.1% compared to the prior corresponding period.
Blackmores Limited (ASX: BKL)
The Blackmores share price was the next worst performer with a decline of 11.1% over the five days. This decline appears to have been driven by concerns that it too could be impacted by weakness in the daigou channel during the pandemic. This could mean the health supplements company’s recovery takes longer than expected.
NRW Holdings Limited (ASX: NWH)
The NRW share price was out of form and dropped 9.6% lower. Last week the mining services company announced that attempts to place Gascoyne Resources into liquidation failed in the Federal Court. Gascoyne is currently in voluntary administration, with NRW involved in the recapitalisation of the company. NRW was a creditor to Gascoyne and is owed $32.7 million.
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More reading
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and Blackmores Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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