It’s been a quiet day for EML. Yet, its share price is soaring.
The post Why the EML (ASX:EML) share price is gaining today appeared first on The Motley Fool Australia. –
The EML Payments Ltd (ASX: EML) share price is gaining today despite no news having been released by the company.
However, the S&P/ASX 200 All Technology Index (ASX: XTX) is also gaining, as are many ASX buy now, pay later (BNPL) stocks.
Additionally, the Reserve Bank of Australia’s (RBA) governor Philip Lowe has stated he would like to see a special licencing system for payment providers.
Let’s take a closer look at what might be influencing the financial services company’s shares today.
What’s driving EML Payments?
There’s seemingly no pinpoint moment that’s driving the EML share price today.
However, there have been a few breadcrumbs that could be increasing investors’ sentiment in the payment company.
The first is the bullish BNPL and technology sector. The ASX 200 technology index is up 0.99% today. At the same time, many BNPL stocks are gaining as they have been for most of this week, spurred by an exciting takeover offer handed to Afterpay Ltd (ASX: APT) that hit the news cycle on Monday.
Additionally, governor of the RBA Philip Lowe told a standing committee on economics today that he believes Australia’s regulatory system needs to be adjusted to account for modern payment providers. He said the payments landscape is changing quickly and our regulatory systems need to keep up.
While nothing in particular came of the conversation, aside from flagging the RBA’s concerns, it puts the spotlight on companies like EML Payments, potentially influencing its share price.
Finally, today’s gains could be a rebalancing from the market’s negative reaction to news released by EML Payments on Friday.
Then, the company stated it’s found historical issues regarding cash from dormant and expired e-money accounts. The troubles date to before the company acquired Prepaid Financial Services.
The EML Payments share price fell 2.2% on the back of the news.
EML Payments share price snapshot
Today’s gains aren’t enough to boost the EML Payment share price back into the green.
The company’s shares have fallen 10% since the start of 2021. However, its 21% higher than it was this time last year.
Should you invest $1,000 in EML Payments right now?
Before you consider EML Payments, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.
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Motley Fool contributor Brooke Cooper 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 and EML Payments. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.