The S&P/ASX 200 Index (ASX: XJO) was out of form last week due largely to weakness in the resources sector. This led to the benchmark index falling 2.2% over the five days to end at 7,460.9 points.
While a good number of shares tumbled lower, some fell more than most. Here's why these were the worst performing ASX 200 last week:
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Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price was the worst performer on the ASX 200 last week with a disappointing 18.2% decline. This appears to have been driven by profit taking and a pullback in a range of commodity prices. It is also worth noting that last month Ord Minnett put a lighten rating and $4.30 price target on its shares. This compares to the current Lynas share price of $6.33. The Lynas share price is still up 59% since the start of the year despite this decline.
Sims Ltd (ASX: SGM)
The Sims share price wasn't far behind with a decline of 17.4% over the five days. This is despite the scrap metal company delivering earnings ahead of its guidance range in FY 2021. Though, one broker that wasn't overly impressed was UBS. In response to the result, the broker downgraded the company's shares to a neutral rating and cut the price target on them to $17.30.
Mineral Resources Limited (ASX: MIN)
The Mineral Resources share price was out of form and tumbled 17% lower last week. This decline appears to have been driven by a sharp pullback in iron ore prices last week. The spot iron ore price crashed 15% on Friday to US$130.2 a tonne. This meant it was down approximately 45% from the record high of US$237.57 it reached in May. The Mineral Resources share price is still up 36.2% year to date.
BHP Group Ltd (ASX: BHP)
The BHP share price was a disappointing performer and dropped 16% over the five days. This was driven by a combination of the weakness in iron ore prices and the mining giant's full year results. Although BHP delivered earnings in line with expectations and a dividend ahead of estimates, investors appear disappointed with its plan to merge its oil and gas operations with Woodside Petroleum Limited (ASX: WPL). Some analysts saw these operations as a key growth driver in the future.
