Last week was tough for Australian investors as the local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) index gave up more ground, falling over 1.1% for the week to take the year-to-date gain below 5% for the first time since early February.
Unfortunately for investors in many of Australia's biggest and brightest resources companies, it was a REALLY tough week! Most traded significantly lower in the first three days of the week as the ASX 200 lost over 2.5% at one point and ended the week materially lower than the index.
8 Struggling Blue Chips
The major underperformers for the week were concentrated in the resources and materials sector. The iron ore price fell back below US$58 per tonne and the WTI oil price again dropped below the emotionally significant US$60 per barrel level. As a result, Australia's largest and most exposed companies to these commodity prices fell heavily.
BHP Billiton Limited (ASX: BHP) dropped 10%, however this drop was exacerbated by the launch of South32 Ltd (ASX: S32), while Fortescue Metals Group Limited (ASX: FMG) plunged nearly 8%, to close at $2.11 from over $2.60 not more than two weeks ago. Santos Ltd (ASX: STO) fell nearly 5% as investors again downgraded profit expectations based on a lower oil price.
The remaining seven companies that underperformed the ASX 200 were an eclectic mix of finance, insurance, and leisure companies. Crown Resorts Ltd (ASX: CWN) shares pulled back over 6.5% after new concerns emerged around the group's short-term profitability in Asia. QBE Insurance Group Ltd (ASX: QBE) and Qantas Airways Limited (ASX: QAN) pulled back by over 4% each following strong runs that have push their respective share prices perhaps higher than they should have been.
Finance groups National Australia Bank Ltd. (ASX: NAB) and Macquarie Group Ltd (ASX: MQG) each fell over 3.5%, but for very different reasons. NAB dropped following the announcement of a heavily subsidised rights offering and IPO of its UK banking operations, while Macquarie dropped after it went ex-dividend and following a strong previous week when it announced a 25% jump in full-year profit.
