The S&P/ASX 200 Index (ASX: XJO) is having a pretty decent run so far this Thursday. At the time of writing, the ASX 200 is up a healthy 0.87%. But that's nothing compared to the Block Inc (ASX: SQ2) share price.
Block shares are on fire today. This ASX 200 tech share is currently up a pleasing 8.89% at $126.93 share.
So, what's going on with Block, the US fintech company that is the owner of Afterpay?
Well, let's get one thing straight. This share price boost doesn't seem to have anything to do with the company itself. Block, which was formerly known as Square, has not released any significant ASX announcements today. Or indeed since the company dropped its quarterly report back on 5 August.
But we are seeing similar moves among many other ASX 200 tech shares this Thursday.
Life360 Inc (ASX: 360) shares have risen more than 9% so far today. Zip Co Ltd (ASX: ZIP) is up more than 5%, as is REA Group Limited (ASX: REA).
Why is the Block share price on fire today?
It's more likely that Block's stellar performance today comes down to the performance of its US-listed sister stock. See, Block's ASX listing is actually a CDI (CHESS Depositary Interest).
This means it is essentially a vehicle that really represents an investment in an underlying company. In this case, that underlying company is Block's primary US listing of Block Inc (NYSE: SQ).
One SQ2 share on the ASX is essentially one SQ share on the US markets, just priced in Australian dollars. Hence, these two investments usually trade in tandem, taking into account currency fluctuations, of course.
So, in last night's trading, Block's US-listed shares rose an impressive 9.54% to US$88.84 each.
Thus, it's no coincidence that the ASX-listed Block shares are rising by a similar amount on our markets today. This is probably why we are seeing such a strong move with Block.
Even so, Block shares remain down more than 28% since they first listed on the ASX back in January.
At the current Block share price, this ASX 200 tech share has a market capitalisation of $64.41 billion.
