Last week the S&P/ASX 200 Index (ASX: XJO) was on form and recorded a strong gain. The benchmark index rose an impressive 2% to finish the period at 6126.2 points.
Unfortunately, not all shares on the index were climbing higher over the period. Here's why these were the worst performers on the ASX 200 last week:
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Silver Lake Resources Limited (ASX: SLR)
The Silver Lake Resources share price was the worst performer on the index with a disappointing 10.7% decline. This appears to have been driven by a sharp pullback in the gold price after risk sentiment improved. For the same reason, the Northern Star Resources Ltd (ASX: NST) share price came under pressure and fell by 10.4% over the five days.
Breville Group Ltd (ASX: BRG)
The Breville share price wasn't far behind and dropped 9.1% last week. The appliance manufacturer's shares came under pressure after the release of its full year results. Although Breville delivered a 25.3% increase in revenue and an 11.2% increase in normalised net profit after tax to $75 million, some investors were betting on an even stronger result. Goldman Sachs believes the Breville share price weakness is a buying opportunity.
AGL Energy Limited (ASX: AGL)
The AGL Energy share price was out of form and tumbled 8.8% lower over the period. Investors were selling the energy company's shares after the release of its full year results. AGL Energy reported an underlying profit after tax of $816 million for FY 2020. This was a 22% decline on the prior corresponding period but within its guidance range. Unfortunately, another sizeable decline in profits is expected in FY 2021. Management has provided underlying profit after tax guidance of $560 million and $660 million in FY 2021.
Challenger Ltd (ASX: CGF)
The Challenger share price was the next worst performer with an 8.6% decline. The annuities company's shares were sold off after the release of its full year results. In FY 2020 Challenger posted an 8% decline in normalised net profit before tax to $507 million and a statutory loss after tax of $416 million. In FY 2021 the company expects its normalised net profit before tax to decline again. It provided guidance of between $390 million to $440 million. This represents a 13.2% to 23% decline year on year.
