Down 21%, what happened to the MA Financial share price today?

The MA Financial Group Ltd (ASX: MAF) share price endured a tough session on Monday, which included an unexpected trading halt. Shares in the company were 21.76% lower at $3.99 at the close today.

The MA Financial share price went tumbling, and an unprecedented velocity of shares traded on the red candles this morning before being halted. This afternoon, the company issued an ASX market update concerning media coverage around the speculated axing of the significant investor visa (SIV).

The company attempted to dispel investor fears in its update by reconfirming its FY22 guidance “for 30% to 40% underlying earnings per share growth on FY21”.

MA Financial also supplied other details to the market. Let’s cover the highlights.

What did the company say?

In reaffirming its guidance, the company described its business model as “highly diversified” with asset management, lending, corporate advisory and equities segments.

The company also responded to the description that its asset management business was almost equally funded by resident and non-migration investors. It noted that 63% of its assets under management (AUM) were non-migration related, which was a higher percentage than the 52.8% originally reported in the Australian Financial Review.

It provided some nuance to this side of the business, saying:

In the first eight months of FY22, 85% of gross fund inflows into the asset management business related to non-migration investors, with the remaining 15% sourced from clients under migration-related programmes.

In its response to the price query, the company noted that today’s price and volume action happened alongside the government’s review of its immigration system and SIV visa and that it had no other news or explanation for these movements.

MA Financial share price snapshot

The MA Financial share price is down more than 55% year to date. In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 8.25% over the same period.

The company’s market capitalisation is $702 million at the time of writing.

The post Down 21%, what happened to the MA Financial share price today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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