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 Monday's bloodbath, which saw the MA Financial share price close down 21.8%.
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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 Australia's Significant Investors Visa (SIV) scheme is under review by the government. And the outlook for the SIV scheme doesn't look rosy, with Home Affairs Minister Clare O'Neil saying, "At the moment, I can't see a lot of reasons to maintain it as part of our [migration] program."
That news sent the MA Financial share price tumbling, as wealthy international clients contribute a significant percentage of the company's total assets under management.
However, that percentage isn't 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 "for 30% to 40% underlying earnings per share growth on FY21".
MA Financial share price snapshot
Despite today's 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).
