These ASX 200 shares had a week to forget…
The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia. –
Last week was a positive one for the S&P/ASX 200 Index (ASX: XJO). The benchmark index rose 74.8 points or 1% over the five days to end the period at 7,348.1 points.
Unfortunately, not all ASX 200 shares were able to climb higher with the market. Here’s why these were the worst performers on the index:
Zip Co Ltd (ASX: Z1P)
The Zip share price was the worst performer on the ASX 200 last week with a 14.5% decline. Investors were selling the buy now pay later (BNPL) provider’s shares amid increasing competition in the industry. This followed reports that Apple is planning to disrupt the BNPL market with the launch of Apple Pay Later. Investors appear concerned that Apple could steal a significant number of customers away from Zip and its QuadPay business. This could put significant pressure on growth rates in the coming years if the reports turn out to be true. In addition, news that PayPal will be removing late fees from its BNPL offering also weighed on sentiment.
Afterpay Ltd (ASX: APT)
The Afterpay share price wasn’t far behind with a disappointing 12.2% decline. This was also due to speculation that tech behemoth Apple is planning to enter the BNPL market. Bloomberg believes Apple will soon launch Apple Pay Later, allowing consumers to pay for any Apple Pay purchase in instalments. The tech giant will use Goldman Sachs as the lender for the instalment loans. Apple reportedly sees it as a weigh to boost Apple Pay transactions, giving its US$50 billion a year services a lift.
PolyNovo Ltd (ASX: PNV)
The PolyNovo share price was a poor performer and tumbled 11.6% over the five days. This was driven by the release of the medical device company’s sales update for FY 2021 which underwhelmed a couple of leading brokers. In response to the release, both Bell Potter and Ord Minnett downgraded the company’s shares to hold ratings and cut their price targets. Bell Potter’s price target has reduced to $2.65 whereas Ord Minnett cut its price target to $2.54.
Mesoblast limited (ASX: MSB)
The Mesoblast share price was some way behind as the next worst performer with a 5.7% decline last week. The majority of this decline came on Friday following the release of further data relating to its respiratory function results from its COVID-19 trial. The clinical results relate to Mesoblast’s randomised controlled trial of its remestemcel-L product on ventilator dependent COVID-19 patients. Most of the data had been previously released.
The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.
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Motley Fool contributor 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 and has recommended AFTERPAY T FPO, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.