The MA Financial Group Ltd (ASX: MAF) share price is charging higher today.
Shares in the ASX financial services company closed yesterday trading for $3.99 and are currently trading for $4.28, up 7.3% after earlier posting gains just north of 8%.
The welcome rebound follows Mondayâs bloodbath, which saw the MA Financial share price close down 21.8%.
What happened on Monday?
MA Financial shares plunged 20% on open yesterday before trading was halted in the early morning. Trading resumed in late afternoon after the company responded to the rapid price moves and later released a market update.
It appears investors were spooked by news that Australiaâs Significant Investors Visa (SIV) scheme is under review by the government. And the outlook for the SIV scheme doesnât look rosy, with Home Affairs Minister Clare OâNeil saying, âAt the moment, I canât see a lot of reasons to maintain it as part of our [migration] program.â
That news sent the MA Financial share price tumbling, as wealthy international clients contribute a significant percentage of the companyâs total assets under management.
However, that percentage isnât as high as some media outlets reported.
In its market update, MA Financial reported that 63% of its assets under management (AUM) are non-migration related. The company also soothed investor nerves by reaffirming its guidance for the 2022 financial year âfor 30% to 40% underlying earnings per share growth on FY21â.
MA Financial share price snapshot
Despite todayâs strong bounce back, the MA Financial shares remain down 52% year-to-date. That compares to the 9% 2022 loss posted by the All Ordinaries Index (ASX: XAO).
The post MA Financial share price leaps 8% following Monday’s bloodbath appeared first on The Motley Fool Australia.
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More reading
- Down 21%, what happened to the MA Financial share price today?
- Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
- Why did the MA Financial share price just crash 20% before being halted?
- 3 ASX 300 financial shares climbing on earnings updates
- Why these 2 ASX shares rocketed 40% last month
Motley Fool contributor Bernd Struben 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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