The S&P/ASX 200 index may have ended July with a day in the red, but that was not enough to stop the index from recording an impressive 193.8 points or 2.9% gain last month.
Unfortunately, not all shares on the index pushed higher in July. Some even fell heavily despite the market's strong gain.
Here's why these shares were the worst-performers on the ASX 200 in July:
The CIMIC Group Ltd (ASX: CIM) share price was the worst performer on the benchmark index last month with a decline of 20%. Investors were selling the contractor's shares after it released a disappointing half year result. In the first half of FY 2019 CIMIC delivered just a 1% increase in net profit after tax to $367 million, which fell short of market expectations. In addition to this, CIMIC reported very weak cash flows during the half.
The Adelaide Brighton Ltd (ASX: ABC) share price wasn't far behind with a decline of 18% in July. The entirety of this decline came on the final day of the month after the building products company released a very disappointing trading update. Due partly to the softening of conditions in the residential and civil construction markets, Adelaide Brighton expects underlying net profit after tax (excluding property) to be in the range of $120-130 million in FY 2019. This will be a decline of 31.5% to 37% on FY 2018's profit of $190 million and well short of the guidance given in May for a decline of around 10% to 15% year on year.
The AMP Limited (ASX: AMP) share price was a disappointing performer again in July with a decline of 16%. The catalyst for this decline was news that the RBNZ had blocked the sale of the embattled financial services company's AMP Life business to Resolution Life. Because of this, the company has suspended its interim dividend and there are now concerns that a potentially highly dilutive capital raising will be required in the near future to fund its turnaround.
The Pilbara Minerals Ltd (ASX: PLS) share price continued its slide in July and fell a further 15.3%. This means the lithium miner's shares are now down 47% since this time last year. Weakening lithium prices weighed on the company's shares again last month. As did a broker note out of Credit Suisse. Although the broker held firm with its outperform rating, it trimmed the price target on its shares to 90 cents. The broker suggested that things could get worse before they get better for the lithium industry.
