ASX 200 drops, Afterpay jumps again, Credit Corp rises

The ASX 200 fell, however the Afterpay share price jumped again.

| More on:
white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The S&P/ASX 200 Index (ASX: XJO) fell today by 0.4% to 7,460 points.

Here are some of the highlights from the ASX:

Afterpay Ltd (ASX: APT)

The Afterpay share price surged another 12% today.

Readers may have seen yesterday that the US payments giant Square has proposed to buy Afterpay in an all-share deal for $39 billion.

Under the terms of the deal, Afterpay shareholders will receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share.

Based on a Square share price of US$247.26 on 30 July 2021, that implied a transaction price of $126.21 per Afterpay share. But overnight the Square share price increased around 10% to US$272.38, increasing the value that Afterpay shareholders will receive if it were to stay at this price.

When Afterpay first announced the news, the Afterpay co-CEOs Anthony Eisen and Nick Molnar said:

By combining with Square, we will further accelerate our growth in the US and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers. We are fully aligned with Square's purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers.

It was the top performer in the ASX 200 today.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price increased slightly after releasing its FY21 result.

It said that its FY21 net profit after tax (NPAT) increased by 11% to $88.1 million. The business reported a "strong" US segment result, with net profit doubling to $17.7 million.

The company pointed to a near record purchased debt ledger (PDL) investment outlay of $293 million. It also saw a record second half gross lending volume of $105 million.

Credit Corp said that it has a record committed starting PDL investment pipeline of $150 million for FY22.

The business will pay a final dividend of $0.36 per share.

Credit Corp said that charge off volumes are growing across all markets and the company anticipates further opportunities to grow purchasing over the course of the year.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne share price dropped 6% today after announcing it had been served with a class action in the Supreme Court of Victoria.

It is being brought by Phi Finney McDonald for the plaintiff and on behalf of all people who bought shares between 24 November 2014 and 15 December 2016.

The proceedings alleges misleading or deceptive conduct and breaches of continuous disclosure obligations regarding alleged anti-competitive conduct in the US that has been the subject of investigations by the US Department of Justice and the Office of the Attorney General in the State of Connecticut.

The company will vigorously defend the proceeding, Mayne Pharma said it emphatically denies any and all allegations of wrongdoing.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A Santos oil and gas worker wearing a hard hat stands in a yellow field looking at blueprints with an oil rig and blue sky in the background
Share Market News

Energy shares rip amid Middle East tensions while ASX 200 surges 20% from April low

ASX energy shares roared 6.49% higher while the ASX 200 lifted 0.37% and set a new record last week.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Broker Notes

These ASX 200 shares could rise 25% to 80%

Analysts think big returns could be on offer from these shares.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were nervous this Friday, ending the week on a sour note.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Market News

Where to invest $5,000 into ASX 200 shares this month

The team at Bell Potter is bullish on these names. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
52-Week Highs

8 ASX 200 shares hitting multi-year highs today

These shares have defied the trend, hitting new price milestones amid a day in the red for the ASX 200.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EOS, Evolution Mining, Renascor, and Woodside shares are jumping today

These shares are ending the week on a high. But why?

Read more »