Last week the S&P/ASX 200 index had its worst week since the global financial crisis after the coronavirus outbreak escalated and spooked global markets. The benchmark index fell 697.8 points or 9.8% to finish it at 6441.2 points.
Whilst the vast majority of shares on the index tumbled lower last week, some shares fell more than most. Here's why these were the worst performing ASX 200 shares over the period:
The Webjet Limited (ASX: WEB) share price was the worst performer on the ASX 200 last week with a decline of 29.2%. Webjet and fellow global travel stocks were sold off after the market began factoring in the spread of the coronavirus across the world. There are concerns that travel bookings will be subdued for a longer than expected period if coronavirus cases outside of China continue to increase. This offset the release of a stellar half year result the week before.
The CLINUVEL Pharmaceuticals Limited (ASX: CUV) share price wasn't far behind with a decline of 29.1%. This appears to have been driven by the release of the biopharmaceutical company's half year results, which revealed a sharp decline in profits. CLINUVEL reported a 74% drop in net profit after tax to $1.06 million after management invested heavily in key areas of its business to support its growing activities.
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price was also out of form and recorded a 27.3% decline last week. Investors were selling the plumbing parts company's shares following the release of a disappointing half year result. Although Reliance Worldwide posted a 5% increase in net sales to $569 million, its adjusted net profit after tax was down heavily compared to the prior corresponding period. Due partly to weaker conditions in the EMEA and Asia Pacific markets, adjusted net profit after tax fell 21% to $63.7 million. This led to management downgrading its full year guidance.
The Link Administration Holdings Ltd (ASX: LNK) share price crashed 26.8% lower last week. The catalyst for this decline was the release of a disappointing half year update. For the six months ended December 31, Link posted a 4% decline in revenue to $624 million and a 20% decline in operating earnings before interest and tax to $109 million. Looking ahead, management warned that FY 2020 operating EBITDA for the continuing business was expected to be approximately 10% lower than the prior year.
