A weak finish to the month led to the S&P/ASX 200 index recording a 0.4% or 24.9 points decline in October.
Whilst a number of shares tumbled lower last month, some fell more than most. Here's why these four shares were the worst performers on the benchmark index in October:
The Southern Cross Media Group Ltd (ASX: SXL) share price was the worst performer on the index in October with a decline of 34%. The media company's shares crashed lower following the release of a trading update. That update revealed that media markets have been weak during the first quarter of FY 2020. As a result, Southern Cross Media is expecting a sizeable drop in first half earnings.
The Costa Group Holdings Ltd (ASX: CGC) share price was out of form again last month with a decline of 30%. Investors sold the horticulture company's shares after it downgraded its guidance for the fourth time in 12 months. Costa's calendar year guidance has been revised to an adjusted net profit of $28 million. This compares to its previous guidance of $57 million to $66 million. In addition to this, the company completed its institutional entitlement offer. It raised $87 million at a discount of $2.20 per share and will now seek to raise a further $90 million from retail investors.
The WiseTech Global Ltd (ASX: WTC) share price came under pressure last month and fell 24.6%. Investors were quick to hit the sell button after WiseTech became the latest ASX share to be targeted by a short seller. A report out of Hong Kong-based J Capital made a series of allegation. One was that the logistics solutions company is overstating its profits. Although the company refuted these claims, some investors panicked and sold their holdings.
The Bega Cheese Ltd (ASX: BGA) share price tumbled a disappointing 21% lower in October. The catalyst for this was a market update at its annual general meeting. According to the update, the food company has continued to experience unprecedented competitive milk supply conditions. In light of this, it expects its normalised EBITDA to be in the range of $95 million to $105 million in FY 2020. This will be a decline of 8.7% to 17.5% on FY 2019's result.
