Last week was a rollercoaster ride for ASX 200 shares, especially in tech and growth sectors. Here are the biggest declines from last week.
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Last week was a rollercoaster ride for ASX 200 shares, with the S&P/ASX 200 Index (ASX: XJO) running as high as 2.70% by Tuesday afternoon before closing the week just 0.30% higher.
This wild performance was driven by weaknesses in sectors including the S&P/ASX Health Care (INDEXASX: XHJ), S&P/ASX Information Technology (INDEXASX: XIJ) and S&P/ASX Materials (INDEXASX: XMJ) which fell a respective 4.46%, 2.30% and 2.76%. Much of the underperformance in the tech and growth sectors was dragged down by increasing concerns for rising bond yields.
While the ASX 200 is looking to rebound strongly today, here are the worst-performing ASX 200 shares from last week.
1. IDP Education Ltd (ASX: IEL)
The IDP share price took a 13.86% nosedive last week, making it the worst-performing ASX 200 share. Despite the significant fall, its shares have only stumbled to a 1-month low and up 14% for the year
There’s a true bull and bear case for the international student and language service provider. A challenging business environment in the face of a global pandemic resulted in a significant decline in the company’s revenues. The 1H FY21 results highlighted a 26% decline in revenue to $269.1 million and 45% decline in net profit after tax to $29.7 million.
While its financial performance might be weak at face value, Ord Minnett called out IDP’s results on 24 February as an “extremely strong result under the circumstances”.
On the day of its 1H FY21 results, the IDP share price briefly touched a new all-time record high of $29.22.
On the flip side, there are increasing concerns that the deteriorating relationship with China will curb international student numbers. An article from the Australian Financial Review notes that education agents based in China were given a directive not to send students to Australia.
2. Cimic Group Ltd (ASX: CIM)
The anticipated and existing policies to boost infrastructure and housing sectors failed to trickle into an improvement in Cimic’s earnings. Cimic Group shares slumped as much as 18.5% on 10 February after the company announced its FY20 results which highlight a 20.3% decline in revenue due to COVID-19.
The Cimic share price has been in a year-on-year decline since 2018. And last week was yet another disappointing 12% decline for the Cimic share price.
3. Fortescue Metals Group Ltd (ASX: FMG)
Fortescue shares went ex-dividend last Monday, paying an interim dividend of $1.47, or a yield of 6.65% at today’s prices. Given the currently elevated iron ore prices, Fortescue is expected to pay a dividend yield of approximately 11.70% in 2021.
The Fortescue share price tumbled 8.50% last week, with much of this weakness attributed to going ex-dividend. Similarly, Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP) experienced similar declines along with going ex-dividend as well.
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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.