The Australian share market may be racing higher this week, but not all shares have followed its lead.
Some have even fallen so hard recently they are now trading at 52-week lows or worse. Here's why these ASX shares have just made this unwanted milestone:
Insurance Australia Group Ltd (ASX: IAG)
The Insurance Australia Group share price dropped to a 52-week low of $6.81 on Tuesday. Its shares have been sold off since it downgraded its guidance for FY 2020 in January. Due to a recent hailstorm event, Insurance Australia Group expects its FY 2020 reported insurance margin to be in the range of 14.5% to 16.5%. This is down from its previous guidance of 16% to 18%. The insurer also revealed a post-tax provision of approximately $80 million for a customer refund program. This relates to a multi-year pricing issue where certain discounts were not always applied in full to premiums for customers who may have been eligible. It is due to release its half year results on Wednesday.
Suncorp Group Ltd (ASX: SUN)
The Suncorp share price tumbled to a multi-year low of $11.93 yesterday. On Tuesday the insurance and banking giant's shares came under pressure after the release of an underwhelming half year result. Due to weakness across the whole of its business, Suncorp reported profit from continuing operations of $396 million for the half. This was down 6.2% on the prior corresponding period. Weighing on its performance was the company's General Insurance underlying insurance trading ratio of 9.3%. This was impacted by the increase in the natural hazard allowance, an increase in reinsurance costs, and the impact of lower yields and higher regulatory costs.
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine Estates share price continued its slide and hit a multi-year low of $11.24 on Tuesday. Investors have been selling the wine company's shares after it downgraded its FY 2020 EBITS guidance at the end of January. The cause of this was difficult trading conditions in the United States market. Treasury Wine's management now expects EBITS growth of 5% to 10% in FY 2020, down from its previous guidance of 15% to 20% growth. In addition to this, concerns that the coronavirus outbreak could be impacting demand in China is weighing on its shares this week.
