Thanks to a strong finish to the week, the S&P/ASX 200 Index (ASX: XJO) recorded its first weekly gain of the month. The benchmark index rose 1.1% to end the period at 7,145.6 points.
Unfortunately, not all shares were able to climb with the market. Here's why these were the worst performers on the ASX 200 last week:
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Metcash Limited (ASX: MTS)
The Metcash share price was the worst performer on the ASX 200 last week with a 9.5% decline. This was despite the wholesale distributor announcing the renewal of a major contract with Drakes Supermarkets in Queensland. Sales by Metcash's Food pillar to Drakes Queensland stores in FY 2021 were ~$220 million. Concerns over consumer spending due to inflation and high energy prices may have offset this news.
Boral Limited (ASX: BLD)
The Boral share price wasn't far behind with a decline of 9.45% over the five days. Investors were selling this building products company's shares after it revealed that its earnings have taken a hit from inclement weather and higher energy prices. This means that Boral will fall short of its underlying earnings before interest and tax (EBIT) guidance of $145 million and $155 million.
Nufarm Ltd (ASX: NUF)
The Nufarm share price was out of form and dropped 9.1% last week. This was driven by the release of the agricultural chemicals company's half-year results. For the six months ended 31 March, Nufarm reported a 41% increase in underlying EBITDA to $330 million. This was in the middle of the company's guidance range of $320 million to $340 million. It appears that some investors may have been expecting Nufarm to hit the top end of its guidance range.
Sims Ltd (ASX: SGM)
The Sims share price was a poor performer with an 8.3% decline over the period. This appears to have been driven by a broker note out of Goldman Sachs. Its analysts downgraded the scrap metal company's shares to a neutral rating with a $21.30 price target. Goldman made the move on valuation grounds and prefers BlueScope Steel Limited (ASX: BSL) at current levels.
