Last week the S&P/ASX 200 Index (ASX: XJO) was on form again and continued its push higher. The benchmark index climbed 33 points or 0.5% higher to finish at 6,634.1 points.
Unfortunately, not all shares on the index climbed higher with the market. Here’s why these were the worst performers on the ASX 200 last week:
IDP Education Ltd (ASX: IEL)
The IDP Education share price was the worst performer on the ASX 200 last week with a 9.7% decline. This appears to have been driven by profit taking after some stellar gains in November. Last month the language testing and student placement company’s shares jumped 29% higher due to optimism over the potential launch of three effective COVID-19 vaccines in the near future. This could lead to a quicker than expected recovery in the international student market.
Zip Co Ltd (ASX: Z1P)
The Zip share price wasn’t too far behind with a disappointing 7.8% decline. Investors were selling the buy now pay later provider’s shares despite the release of a trading update which revealed a record performance during November. Zip reported record transaction value of $577.1 million for the month. This was up 44% month on month and more than double year on year. Key drivers of this growth were a 157% increase in monthly transaction numbers and a 104% year on year increase in customer numbers to 5.3 million. No details were provided in relation to bad debts or arrears.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price was a poor performer and drop 5.6% last week. This may have been driven by a broker note out of Morgan Stanley a week earlier. It retained its underweight rating and $48.00 price target on the fund manager’s shares. The broker has concerns that its performance could be negatively impacted due to its focus on growth. Growth shares have underperformed value shares recently following a significant rotation by investors.
Corporate Travel Management Ltd (ASX: CTD)
The Corporate Travel Management share price was out of form and tumbled 5.6% over the five days. As with IDP Education, this appears to be down to some investors taking a bit of profit off the table. The reopening of domestic borders and COVID-19 vaccine news gave Corporate Travel Management shares a huge boost last month. So much so, the Corporate Travel Management share price is still up 19.1% since this time in November even after this decline.
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Returns as of 6th October 2020
More reading
- These were the best performing ASX 200 shares last week
- ASX 200 goes up on Friday
- Elixinol (ASX:EXL) share price tumbles on capital raising update
- Are ASX stocks about to get an earnings upgrade boost in the new year?
- Why BetMakers, Medical Development International, Qantas, & Zip are dropping lower
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management 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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