The MA Financial Group Ltd (ASX: MAF) share price slipped into the red this morning shortly before being halted, giving the company time to make a further announcement.
The fact that shares were halted hints that a concrete reason for the sell-off could be announced shortly by the company.
Some speculation about the sell-off has emerged from The Australian today, stating that Australia's Significant Investors Visa (SIV) scheme will undergo serious changes or be revoked altogether.
Wealthy international clients contribute $3.4 billion to MA Financial's $7.2 billion total assets under management. With the visa scheme being called into question, this could jeopardise this contribution.
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Significant Investors Visa (SIV) in danger of being scrapped
In an Australian Financial Review article posted on Sunday, Home Affairs Minister Clare O'Neil commented on the SIV scheme:
It's actually costing us on average for every person because these are people who are generally coming in at quite a late stage of their life, often at the end of their business career, and coming to Australia, basically to settle down and retire. Now, that's not a productive use, I don't think, of our migration system.
O'Neil continued:
It is a visa program that I think isn't adding value to the country, and it's something that we'll be looking at in the context of the review of the immigration program that I've just announced. At the moment, I can't see a lot of reasons to maintain it as part of our program.
What else happened?
The company's most recent earnings results for 1HFY22 were positive across the board when it reported them on 25 August. MA Financial recorded strong results in growing its revenues and profitability and forecasting sizable earnings per share (EPS) growth for CYFY22 along with improved fundamentals. When the Fool reported on MA Financial's results, the company's shares rallied 1.48%.
A total of 838,551 shares were traded in less than 20 minutes this morning. That's an unprecedented velocity of shares trading hands for the company.
To put this number into perspective, MA Financial's average share trading volume for an entire month is only 251,654. While today 233.21% more shares were traded in less than half an hour.
Given the seriousness of the market's reaction, the company's almost immediate suspension of shares in trading today, and press coverage, it's more than likely we'll see a response from MA Financial in the immediate future.
After all, the company knows something that we don't and is preparing its comments as we speak.
MA Financial share price snapshot
MA financial's share price is down 20.59% today.
Shares of the diversified financial services company are currently on ice at $4.05 each. Earlier today, shares made an intraday high of $4.59. and a low of $3.94
The company share price is down 54.75% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 6.37% over the same period.
The company's market capitalisation is $897.43 million.
