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The S&P/ASX 200 Index (ASX: XJO) was on form in FY 2024. Over the 12 months, the benchmark index delivered a solid return of 7.8% before dividends.
Unfortunately, not all shares on the ASX 200 were able to rise with the market. Here’s why these were the worst performers on the index during the year:
Liontown Resources Ltd (ASX: LTR)
The Liontown Resources share price was the worst performer on the ASX 200 in FY 2024 with a 68% decline. This was driven by the collapse of its proposed takeover by Albemarle Corp (NYSE: ALB) and significant lithium price weakness. The latter is bad news for Liontown, which will be commencing production at the Kathleen Valley Lithium Project in the coming weeks. For many of the same reasons, the IGO Ltd (ASX: IGO) share price lost 63% of its value during the 12 months. Liontown and IGO are not alone, though. Many other ASX lithium stocks are down materially over the same period.
Star Entertainment Group Ltd (ASX: SGR)
The Star Entertainment share price wasn’t far behind with a 54% decline over the 12 months. Investors were selling this casino and resorts operator’s shares due to concerns over news that the NSW Independent Casino Commission is launching another inquiry. In addition, the company’s trading performance was very disappointing. Management blamed the subdued performance on its Premium Gaming Rooms (PGRs) business.
The Healius share price was out of form and sank 49% during the financial year. Investors were selling this medical and pathology centre operator’s shares due to its significant underperformance. In addition, the company was forced to undertake capital raising at a significant discount to its prevailing share price. The company advised that it decided to raise the funds to reduce its net debt and reset its balance sheet with appropriate gearing.
Fletcher Building Ltd (ASX: FBU)
The Fletcher Building share price lost 46% of its value during FY 2024. This was also driven partly by the significant downturn in the performance of the building materials company. Fletcher Building advised that market conditions across the company’s Materials and Distribution divisions have weakened throughout the year. In light of this, it revealed that it will fall short of its EBIT before significant items guidance. In addition, management warned that it expects market conditions to remain challenging in both New Zealand and Australia in the near term.