The S&P/ASX 200 Index (ASX: XJO) is having a rather shaky Tuesday so far this session. After opening strongly this morning, the ASX 200 has lost most of its steam and is currently up by just 0.1%. But the same can't be said of the Block Inc (ASX: SQ2) share price today.
Block shares are on fire this Tuesday. The US-based fintech company formerly known as Square is currently up a whopping 6.4% at $115.48 a share at the time of writing, well above the return of the broader market.
So what's going on here?
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Why is the Block share price on fire?
Well, Block isn't your normal ASX share. Its ASX listing is actually a CHESS Depositary Interest (CDI), which means the ASX shares represent ownership of another, foreign-listed investment. In Block's case, it is the original shares of Block Inc (NYSE: SQ) that are listed on the US markets.
This arrangement came out of Block's decision to acquire the old ASX-listed buy now, pay later (BNPL) pioneer Afterpay. Afterpay used to be an ASX share (as many of us would remember). But its ASX listing was replaced by Block when the American giant bought Afterpay back in early 2022.
So this situation probably gives us the best indication of why Block shares are on a tear today. Last night (our time), Block's US-listed shares rocketed 7.22% to US$81.66. As such, Block's ASX listing was always going to have a cracking day today.
Most US tech shares had a stellar session across the Pacific last night.
Tesla Inc (NASDAQ: TSLA) shares were up 7.74%, while Shopify Inc (NYSE: SHOP) and Netflix Inc (NASDAQ: NFLX) were up 8.8% and 4.9%, respectively. It seems Block shares have just been caught up in this stampede to tech.
It's not too different on the ASX today. Some ASX tech shares had very strong mornings, although many have slumped around lunchtime. Xero Limited (ASX: XRO) shares were up around 3% at one point, as was Appen Ltd (ASX: APX). Cettire Ltd (ASX: CTT) is a standout performer this Tuesday, up by almost 10% at the time of writing.
