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These were the worst-performing shares on the ASX 200 in June

James Mickleboro
punished, punishment, red card

The S&P/ASX 200 index was in fine form again in June. Over the month the benchmark index raced almost 3.5% higher to finish it at 6,618.8 points.

Unfortunately, not all shares fared as well as the index during the month. Here’s why the shares listed below were amongst the worst-performers on the index last month:

The Vocus Group Ltd (ASX: VOC) share price was the worst performer on the benchmark index with a decline of 28.8%. Investors headed to the exits in their droves after the telco company revealed that yet another takeover approach had collapsed. This time around it was energy retailer AGL Energy Limited (ASX: AGL) that pulled the plug on a deal following a period of due diligence. It explained that it wasn’t convinced the deal would add value for its shareholders at the price offered.

The Pilbara Minerals Ltd (ASX: PLS) share price was a poor performer last month with a sizeable 25% decline. The lithium miner’s shares came under pressure following the release of a very disappointing production and sales update. Whilst the company actually delivered a very strong month of production in June, it warned that demand for its produce was weakening. In light of this, the miner advised that it plans to reduce its production in June and July materially to conserve cash flow and working capital.

The Galaxy Resources Limited (ASX: GXY) share price fell approximately 22% in June. The catalyst for this decline appears to have been the further weakening of lithium prices and concerns that things could still get a lot worse before they get better. In addition to this, late in the month Galaxy revealed that it only shipped two of its three planned shipments for the current quarter. Management didn’t explain the reason for the delay, which appears to have sparked fears that it is a demand issue rather than a supply or operational issue.

The Challenger Ltd (ASX: CGF) share price was one of the worst-performers last month with a decline of 17.7%. The annuities company’s shares sank lower after it provided an update at its investor day event. According to the update, the company now expects to hit the low end of its downgraded normalised net profit before tax guidance of $545 million to $565 million. Looking ahead, it expects another tough year in FY 2020 and has provided normalised net profit before tax guidance of between $500 million and $550 million. This is due partly to lower equities growth and interest rates on shareholder capital.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019