Here’s why ASX tech shares are up 6% on Monday

The tech sector is on fire on Monday…
The post Here’s why ASX tech shares are up 6% on Monday appeared first on The Motley Fool Australia. –

It has been a very positive day for the Australian tech sector on Monday. At one stage today, the S&P ASX All Technology index was up as much as 6%.

This is playing a key role in driving the S&P/ASX 200 Index (ASX: XJO) 1.1% higher this morning.

Why is the tech sector storming higher?

A key driver of the S&P ASX All Technology index’s gain on Monday has been the performance of the Afterpay Ltd (ASX: APT) share price.

The buy now pay later (BNPL) provider is the biggest company included on the technology-focused index. So, with Afterpay shares currently up 22% after agreeing to a $39 billion takeover by US payments giant Square, it is giving the index and other ASX tech shares a major boost.

Afterpay is recommending shareholders accept an offer of 0.375 shares of Square Class A common stock for each share they hold. Based on the latest Square share price of US$247.26, this implies a transaction price of approximately $126.21 per Afterpay share.

This news is also rubbing off on fellow BNPL providers. Both Sezzle Inc (ASX: SZL) and Zip Co Ltd (ASX: Z1P) shares are racing higher this morning. Investors may be hoping these ASX tech shares will become takeover targets as well.

Are any other tech shares rising strongly?

Also giving the S&P ASX All Technology index a lift is a strong performance by the Dicker Data Ltd (ASX: DDR) share price.

This ASX tech share is up over 11% in response to a late announcement on Friday. That announcement revealed that Dicker Data is making a key acquisition. The IT distributor has entered into a binding agreement to acquire the Exeed Group business operating across Australia and New Zealand for $68 million.

This transaction will see Dicker Data’s New Zealand business become the second largest IT distributor in that market. Management estimates that the two companies will have NZ revenue of over NZ$500 million.

The post Here’s why ASX tech shares are up 6% on Monday appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 midday update: Afterpay to be acquired by Square, Oil Search to merge with Santos

What is the outlook for the Afterpay (ASX:APT) share price?
Dicker Data (ASX:DDR) share price sets record high on acquisition update
Who is Jack Dorsey and why is he buying Afterpay (ASX:APT)

The Square (NYSE:SQ) share price has gained 80% over the last year

Motley Fool contributor 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 and has recommended AFTERPAY T FPO, Dicker Data Limited, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!