Why did ASX buy now, pay later share Laybuy just rocket 95%?

Happy woman shopping online.

Happy woman shopping online.It’s been a pretty pleasant day so far for ASX shares. At the time of writing, the All Ordinaries Index (ASX: XAO) has added a robust 0.68% and has risen above 7,080 points. But it’s been even better for the Laybuy Holdings Ltd (ASX: LBY) share price today.

Laybuy shares have rocketed an astonishing 55.84% so far today. The buy now, pay later (BNPL) share closed at 7.7 cents a share yesterday, but is now going for 12 cents at the time of writing after opening at 9.1 cents this morning. What’s more, this company went as high as 15 cents earlier in today’s trading session, which was worth a rise of almost 95% at the time.

The strange thing is that this stratospheric share price gain seems to have come out of the blue. There has been no news or announcements out of Laybuy itself today. Or indeed since 30 June.

But this isn’t the first time Laybuy shares have given investors a day to remember. Just yesterday, the company rose from 4 cents a share to 7.7 cents, a one-day increase of almost 100%. Today’s pricing means that Laybuy is now up 200% since Tuesday afternoon.

Laybuy shares get an ASX speeding ticket

These incredible gains have not gone unnoticed by the higher powers of the ASX. Just before market open this morning, Laybuy revealed that it had received a ‘speeding ticket’ from the ASX for yesterday’s rocketing gains.

When asked if the company can explain yesterday’s gains, Laybuy responded that it knew of nothing that could explain these share price moves. However, it did point the finger at some other factors that could have been in play.

Here’s some of what the company said:

Laybuy notes the very material share price increases of other companies in the Buy Now Pay Later sector during the course of 27 July 2022, in particular Sezzle, Zip and Openpay. Laybuy believes that the recent trading in its securities may have been driven by the same factors that influenced the trading in some or all of those other securities.

ASX BNPL shares jump on a rocket

Indeed, it’s not just Laybuy shares that have been throwing off impressive gains of late. The Zip Co Ltd (ASX: ZIP) share price rose more than 21% yesterday and is up another 14% today so far at $1.42 a share.

Openpay Ltd (ASX: OPY) shares rose 30% yesterday and are up another 32.84% so far today at 44 cents a share.

And Sezzle Inc (ASX: SZL) shares rose more than 97% yesterday and a further 17.7% so far today to 83 cents a share.

Zip and Openpay have not yet been pinged by the ASX for these massive increases in valuation (at the time of writing). However, Sezzle shares were halted from trading yesterday afternoon after the company received a speeding ticket of its own. The shares have obviously returned to trading today.

So all in all, no one knows why Laybuy and these ASX BNPL shares have jumped on a rocket this week. It just seems to be the result of some very potent buying pressure at this stage. But no doubt there are many ASX BNPL share investors out there today who are in a very jubilant mood.

The post Why did ASX buy now, pay later share Laybuy just rocket 95%? appeared first on The Motley Fool Australia.

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