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Why these ASX 200 shares have been crushed in 2020

James Mickleboro
market crash

The S&P/ASX 200 index has built on 2019’s exceptional gain and started the year in a very positive fashion. Since the turn of the year the index has climbed a sizeable 6.1%.

Not all shares have climbed higher with the index, though. Here’s why these ASX 200 shares have been sold off in 2020:

The Corporate Travel Management Ltd (ASX: CTD) share price is down a disappointing 17.2% since the start of the year. The catalyst for this share price weakness has been the coronavirus outbreak in China. Investors appear concerned that demand for business travel will be negatively impacted given the travel restrictions that have been put in place into and out of mainland China. At the end of January Corporate Travel Management advised that it was monitoring the situation and would provide an update with its half year results.

The Nearmap Ltd (ASX: NEA) share price has fallen 23% in 2020. The aerial imagery technology and location data company’s shares have come under pressure this year after a disappointing guidance downgrade. Instead of annualised contract value (ACV) of $116 million to $120 million, it now expects its ACV to be in the range of $102 million to $110 million in FY 2020. This is due to the loss of a major contract and two churn/downgrade events. Management was quick to point out that the downgrade was because of tough market conditions and not the result of rising competition.

The Treasury Wine Estates Ltd (ASX: TWE) share price has crashed 31.5% lower since the turn of the year. Investors have been heading to the exits after the wine company downgraded its FY 2020 EBITS guidance. This follows a poor first half showing in the United States due to leadership changes and unfavourable market conditions. Treasury Wine now expects EBITS growth of just 5% to 10%, compared to its previous guidance of 15% to 20% growth. Though, management has admitted that this guidance does not incorporate any negative impacts from the coronavirus outbreak.

The post Why these ASX 200 shares have been crushed in 2020 appeared first on Motley Fool Australia.

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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 Corporate Travel Management Limited, Nearmap Ltd., and Treasury Wine Estates 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. 2020