Not even a terrible finish to the month could stop the S&P/ASX 200 Index (ASX: XJO) from pushing higher in October. The benchmark index gained 1.9% to finish at 5,927.6 points.
Not all shares were able to climb higher with the market today. Here's why these were the worst performers on the ASX 200 in October:
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Iluka Resources Limited (ASX: ILU)
The Iluka Resources share price was the worst performer on the ASX 200 in October with a 43.5% decline. However, this decline was nothing to do with the performance of the mineral sands company. It was due to the spin-off of its Deterra Royalties Ltd (ASX: DRR) business. Eligible shareholders received 1 Deterra Royalties share for every Iluka share they owned.
Mesoblast limited (ASX: MSB)
The Mesoblast share price wasn't far behind and crashed 39.8% lower last month. This disappointing decline came after the biotechnology company revealed that the US FDA has not approved its remestemcel-L (RYONCIL) treatment for paediatric patients with steroid-refractory acute graft versus host disease (SR-aGVHD). The regulator has asked Mesoblast to undertake at least one more randomised, controlled study in adults and/or children. This is to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD. The company was also hit with a class action from disgruntled shareholders.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price was a poor performer and dropped 20.5% in October. This sizeable decline appears to have been driven by a broker note out of Credit Suisse and escalating COVID-19 cases globally. In respect to the note, Credit Suisse downgraded the travel agency's shares to a neutral rating with a $15.31 price target after pushing back its travel bookings recovery forecast by six months. This was to reflect a surge in COVID-19 cases in the northern hemisphere.
Regis Resources Limited (ASX: RRL)
The Regis Resources share price was out of form and sank 17.8% lower last month. Investors were selling this gold miner's shares following a pullback in the price of the precious metal and an underwhelming quarterly update. The latter led to analysts at Macquarie reaffirming their underperform rating and slashing the price target on its shares down to $4.50. And while the Regis share price has since dropped below this target price, Macquarie has warned that the second quarter could also be weak.
