ASX to dive again as RBA prepares to act

http://www.afr.com/markets/equity-markets/asx-to-dive-again-as-rba-prepares-to-act-20200319-p54bku

Afterpay notes the volatility in its share price – which fell by 30 per cent on Wednesday – and said that it doesn’t know why its shares are so volatile.

“We are unaware of any information, outside of the current uncertainty in the market generally, that would have precipitated recent share price performance,” the buy now, pay later payments provider said in a letter to shareholders.

Afterpay has moved to reassure investors. Dominic Lorrimer

“We are fortunate to have a business model, balance sheet and customer base that creates a level of protection in times of economic uncertainty,” it continued.

“We advise that we have not seen a material impact on our business activity and timing of instalment repayments or transaction losses to date.”

It will release an operating update after the end of the March quarter to “provide a relevant and meaningful snapshot” of performance over the quarter.

Average transaction values of $150 and average outstanding balances of $211 are low, it said, with no material concentration in portfolio from a merchant or customer perspective.

Liquidity levels have been maintained year-to-date and are being conservatively managed, it said. The firm will proceed with its Afterpay day.

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