Netwealth Group Ltd (ASX:NWL) and TPG Telecom Ltd (ASX:TPG) shares were among the worst performers on the ASX 200 last week…
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Last week certainly was a good one for the S&P/ASX 200 Index (ASX: XJO). Over the five days the benchmark index added 1.7% to end the period at 6,824 points.
Unfortunately, not all shares on the index were able to follow its lead. Here’s why these ASX 200 shares were the worst performers last week:
Resolute Mining Limited (ASX: RSG)
The Resolute Mining share price was the worst performer on the ASX 200 by some distance with a 26% decline. This decline was driven by news that the company’s Bibiani Gold Mine licence in Ghana has been terminated by the government. As a result, Resolute has been advised to cease all activities and operations at the site. Given that the company is currently in the process of selling the asset to Chifeng Jilong Gold Mining for US$105 million, it is unclear whether this deal will still go ahead.
Netwealth Group Ltd (ASX: NWL)
The Netwealth share price was out of form and sank 14% last week. Investors were selling the wealth management platform company’s shares after it announced that its deposit arrangement with Australia and New Zealand Banking GrpLtd (ASX: ANZ) will end in 12 months. The agreement with ANZ currently provides a margin of 95 basis points above the overnight cash rate. Netwealth is trying to negotiate a new arrangement, but it is unlikely to be on as favourable terms. The HUB24 Ltd (ASX: HUB) share price sank 11.8% last week on the back of this news. Investors appear concerned it will also have its deposit arrangement terminated.
TPG Telecom Ltd (ASX: TPG)
The TPG Telecom share price tumbled 7.4% last week. The catalyst for this was news that its Founder and Chairman, David Teoh, has resigned from the company with immediate effect. Mr Teoh revealed that he felt that now was the right time to step aside and pursue other interests. Replacing him will be board member Canning Fok. Mr Teoh described Fok as “one of the most capable business leaders in the world.”
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price wasn’t far behind with a 7% decline. This was despite there being no news out of the rare earth producer. However, last week its rival Australian Strategic Materials Ltd (ASX: ASM) announced a $65 million placement. Some of these funds will be used to advance key FEED workstreams on the Dubbo Project in New South Wales. This project is aiming to compete with Lynas by supplying globally significant quantities of zirconium and rare earth materials.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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