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ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher

An ASX investor looks devastated as he watches his computer screen, indicating bad news
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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is a sea of red following a broad market selloff. Rising bond yields have spooked investors, leading to the benchmark index falling 2.3% to 6,678.7 points.

Here’s what is happening on the market today:

Afterpay returns and tumbles lower

The Afterpay Ltd (ASX: APT) share price has returned from its trading halt and tumbled lower. This morning the payments company announced the completion of an upsized convertible notes offering which raised $1.5 billion. These notes are due in 2026 and are convertible into fully paid ordinary shares with an initial conversion price of $194.82. This represents a 45% premium to the Afterpay share price prior to the trading halt. The funds will be used to increase its interest in its US business and support its growth.

AMP joint venture with Ares

The AMP Ltd (ASX: AMP) share price has avoided the selloff and is pushing higher on Friday. The catalyst for this was the financial services company announcing a potential joint venture with Ares Management. The two companies have signed a non-binding Heads of Agreement to form a $2.25 billion joint venture which will see Ares inject up to $1.55 billion in cash into AMP.

Kogan half year results

The Kogan.com Ltd (ASX: KGN) share price is also tumbling lower today. Investors have been selling its shares after the market selloff overshadowed a strong half year result. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% jump in adjusted net profit after tax to $36.5 million. This was driven by a 76.8% increase in Kogan active customers to 3 million and strong sales growth by its Exclusive Brands and Kogan Marketplace segments.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the AMP share price with a 4% gain. This follows its joint venture announcement. The worst performer has been the Orica Ltd (ASX: ORI) share price with a 20% decline. This morning the company warned that a number of factors were weighing on its performance. Combined these are expected to impact its pre-tax earnings by up to $125 million.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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