Afterpay, Zip crash while ASX holds higher: Wednesday 14 July

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Steven Deare
(Australian Associated Press)

 

Buy now, pay later providers have been roundly dumped by investors on the ASX after reports Apple will enter the burgeoning market.

The technology upstarts had big falls after a Bloomberg report that Apple plans to allow users to repay Apple Pay purchases in instalments.

While the consumer technology giant has not confirmed the report, investors appeared to take it seriously.

Zip lost 11.38 per cent to $7.32. Lesser-known rival Sezzle shed 10.26 per cent to $7.96.

Market leader Afterpay lost 9.59 per cent to $107.00.

Yet the rest of the market fared better and helped the benchmark S&P/ASX200 index close up 22.6 points, or 0.31 per cent, to 7354.7 on Wednesday.

The All Ordinaries closed higher by 19.6 points, or 0.26 per cent, to 7631.8.

 

The Australian dollar was buying 74.59 US cents at 1623 AEST, lower from 74.88 US cents at Tuesday’s close.

 

US consumer prices in June rose by the most in 13 years.

So-called core consumer prices surged 4.5 per cent year over year, the largest rise since November 1991.

Economists viewed the price surge, driven by travel-rated services and used cars, as mostly temporary, aligning with Federal Reserve Chair Jerome Powell’s long-standing views.

The main US indices each lost less than half a per cent.

 

In Australia, the coronavirus lockdown for Sydney and surrounds has been extended to at least July 30.

The federal government on Tuesday offered additional financial support for businesses and people affected by lockdowns across the country.

 

 

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