At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is back on form and is charging higher. The benchmark index is currently up 1.6% to 6,050.2 points.
Here’s what is happening on the market today:
Buy now pay later shares sink.
Afterpay Ltd (ASX: APT) and its buy now pay later rivals have continued to sink lower on Wednesday. Investors have been selling their shares following an announcement by PayPal yesterday. That announcement revealed that the payments giant will be launching Pay in 4 in the United States in the final quarter of the year. Pay in 4 is a buy now pay later offering which allows consumers to pay for items in four interest-free instalments.
IOOF share price crashes lower.
The IOOF Holdings Limited (ASX: IFL) share price has crashed materially lower on Wednesday after returning from a trading halt. Investors have been selling the financial services company’s shares following the completion of the institutional component of its $1,040 million capital raising. IOOF raised a total of $734 million from institutional investors at a significant 24.4% discount of $3.50. This capital raising was undertaken to partly fund the acquisition of the National Australia Bank Ltd (ASX: NAB) wealth business, MLC Wealth for $1,440 million.
Bank shares mixed.
The big four banks are having a mixed day on Wednesday and are acting as a bit of a drag on proceedings. The best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price with a gain of 1.2%.
The best and worst ASX 200 performers.
The best performer on the ASX 200 on Wednesday has been the Western Areas Ltd (ASX: WSA) share price with a 6% gain. This morning the nickel producer provided a positive update on its Odysseus mine. The worst performer on the index by some distance has been the IOOF share price with a massive 21% decline. This follows the aforementioned capital raising.
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More reading
- UBS picks the best and worst ASX stocks from the reporting season
- Why the Zip share price is plummeting 15% today
- Why Afterpay, IOOF, Redbubble, & Zip shares are dropping lower
- Why the IOOF share price is crashing 21% lower today
- PayPal scares investors in BNPL shares, time to sell?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.
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