LAFDI market report - Friday 20th November

By Rupert Taylor on Friday 20 November 2015

Alternative Lending

   

Weekly return

LAFDI

-0.07%

MSCI World

1.78%

Top 5 performing Stocks in last week

1

OFX AU Equity

27.03%

2

QIWI US Equity

12.46%

3

SGM US Equity

9.66%

4

NEWS US Equity

4.88%

5

WEX US Equity

3.64%

Worst 5 performing Stocks in last week

1

GLIF LN Equity

-17.03%

2

TREE US Equity

-12.75%

3

ONDK US Equity

-12.11%

4

RM US Equity

-6.52%

5

EPO LN Equity

-5.82%

 

* Returns are calculated for the week to local market close on Thursday.

The LAFDI finished flat in a week of divergent moves from index constituents.  Even though one of the latest additions to the index received a bid approach, other names struggled and the index could not keep pace with the wider equity market.    

OzForex Group Ltd has only been a constituent of the LAFDI since 16/10/2015 when the index was rebalanced for the 3rd quarter.  But it is already proving a worthwhile addition and may result in the index delivering its 4th acquisition in the past 12 months.  Not bad going out of a list of around 30 companies! On Thursday 19th November the company reported in a statement before the start of trading that Colorado-based Western Union proposed to buy it in cash for between A$3.50 and A$3.70 per share.  This equates to a company equity value of A$888 million ($631.10 million). The stock had closed at A$2.60 on Wednesday, having listed two years earlier with an issue price of A$2.00.  But on Thursday the shares closed at close to $3.4.  Interestingly the shares continue to trade at a discount to the proposed take over price.  The company has said that it would evaluate Western Union's proposal, which did come with several conditions including requirement for due diligence, retention of management and regulatory approval.  For now the market is pricing in at least a small risk that the deal doesn’t come to pass. 

At the other end of the spectrum Alternative Finance asset manager GLI Finance Ltd issued a trading update.  The company confirmed a re-organisation around 3 business areas: Ownership of alternative lending platforms; direct lending; fund management.  Whilst the company gave further details of the capital raised into its new fund - "GLI Alt Fi" – the market took fright and the shares reacted sharply negatively.  

Please note – The LAFDI is now available on Bloomberg.  Tickers:

LAFDITR GO for the Total Return Index

LAFDIPR GO for the Price Return Index

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