It was a month to remember for the S&P/ASX 200 Index (ASX: XJO) in October. The benchmark index charged an impressive 6% higher during the month.
Unfortunately, not all ASX 200 shares managed to climb with the market and some even recorded sizeable declines. Here's why these were the worst performers on the index last month:
St Barbara Ltd (ASX: SBM)
The St Barbara share price was the worst performer on the ASX 200 in October with a 31.1% decline. Investors were selling this gold miner's shares following the release of the company's first quarter update. That update revealed weaker than expected production and higher costs, which led to St Barbara downgrading its full year production guidance and increasing its all-in sustaining cost guidance.
Brainchip Holdings Ltd (ASX: BRN)
The Brainchip share price was sold off in October and dropped a sizeable 25.3%. The majority of this decline came after the semiconductor company released a quarterly update which revealed cash receipts in line with what a café would generate. Yet Brainchip had a market capitalisation of $1.5 billion at the time. No wonder short sellers are targeting the company!
Megaport Ltd (ASX: MP1)
The Megaport share price wasn't far behind with a 21.8% decline last month. This was driven by the release of a first quarter update which was slightly below expectations on the top line. However, the real damage was done by the company's higher capex guidance, which is impacting Megaport's free cash flow breakeven goals.
Medibank Private Ltd (ASX: MPL)
The Medibank share price was out of form and sank 19% during the month. Investors were selling this private health insurer's shares after the company was hit by a cyberattack. Medibank estimates that its half year earnings will be impacted by $25 million to $35 million pre-tax. However, this doesn't include costs relating to potential remediation, regulatory, or litigation-related costs. Nor does it cover the brand damage and potential customer churn.
