Although the S&P/ASX 200 index finished the week with two consecutive days of declines, the benchmark index still recorded a strong 0.7% gain for the week.
Unfortunately, not all shares on the index were on form. Here's why these ASX shares were the worst performers on the index last week:
The Southern Cross Media Group Ltd (ASX: SXL) share price was the worst performer last week with a decline of 22.7%. The media company's shares were crushed following the release of a trading update in the middle of the week. According to the update, media markets have been weak during the first quarter of FY 2020. As a result, revenue for the quarter was down 8.5% on the prior corresponding period. This is expected to lead to a sizeable drop in first half earnings.
The Afterpay Touch Group Ltd (ASX: APT) share price was out of form last week and sank 15.6% lower. The payments company's shares were sold off following the release of a broker note out of UBS on Wednesday. According to the note, the broker initiated coverage on the BNPL provider with a sell rating and $17.25 price target. It believes Afterpay's shares have excessive growth built into them and is concerned by regulatory risks. UBS feels that BNPL provider's could soon be classed as credit providers. In addition to this, news that the RBA is looking into the BNPL industry also hurt sentiment.
The Northern Star Resources Ltd (ASX: NST) share price wasn't far behind with a decline of 14.4% last week. Investors were quick to hit the sell button following the release of a quarterly update that fell short of expectations. During the quarter, Northern Star's group gold sold came to 184,005 ounces at an all-in sustaining cost (AISC) of US$1,024 an ounce. Sales from the Pogo operation weighed heavily on its overall result, coming in at 28,962 ounces at a sky-high high AISC of US$1,919 an ounce.
The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price lost 13.5% of its value last week. I suspect that this decline was down to profit taking after an impressive gain a week earlier. The biopharmaceutical company's shares rocketed significantly higher earlier this month after the FDA approved its SCENESSE product in the United States. Despite this decline, Clinuvel's shares are still up 76% year to date.
