MENU

Afterpay Touch Group Ltd (ASX:APT) shares smashed on Senate inquiry news

The Afterpay Touch Group Ltd (ASX: APT) share price had been one of the best performers on the market on Wednesday, but it unfortunately didn’t end that way.

Its shares finished the day down 19% at $11.35.

What happened?

The fintech company’s shares were smashed in late trade after reports emerged claiming that payday lenders, debt management firms, and buy now pay later platforms will be the subject of a new Senate inquiry.

According to the SMH, the inquiry will focus on parts of the finance sector that have escaped the scrutiny of the Hayne royal commission.

The inquiry was given the green light after the Greens, independent Derryn Hinch, and Centre Alliance senators Rex Patrick and Stirling Griff backed Labor’s proposal, meaning it will have enough votes to pass the Senate.

It wasn’t just the Afterpay Touch share price that was impacted. Other shares that were hit hard include:

The Cash Converters International Ltd (ASX: CCV) share price tumbled almost 12% to 26 cents.

The Credit Corp Group Limited (ASX: CCP) share price dropped 9% to $18.85.

The Money3 Corporation Limited (ASX: MNY) share price fell 14% to $1.70.

The Zip Co Ltd (ASX: Z1P) share price fell over 12% to 93 cents.

What now?

I can’t help but feel that this has been a bit of an overreaction from investors this afternoon and think this could potentially be a buying opportunity for a lot of these shares.

However, as we have seen with the banks and the aged care operators, inquiries of this nature can weigh heavily on investor sentiment and ultimately share prices. Because of this, I wouldn’t necessarily expect these shares to rebound immediately.

So, for now, it might be best to keep your powder dry and wait to see how the situation develops in the coming weeks and months.

In the meantime, here's a top share that could be a great long-term investment.

Top Australian Stock Picker Just Issued Rare “Double Down” Buy Alert

Discover why this legendary Australian stock-picker just issued a “Double Down” buy alert to his exclusive group of insiders… and why he’s convinced this might be the single most attractive entry point for years to come.

Simply click here to get started and access our secure sign-up page.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!