Zip Surges, Insignia Nears Exit in a Busy Week for Finance Stocks

Zip Co (ASX:ZIP) led the week with a 26.29% gain after it raised full-year cash earnings guidance and posted record third-quarter cash EBTDA of $65.1 million. Investors cared because the numbers showed the US business is still growing fast while bad debts stayed steady. DTI Group (ASX:DTI) climbed 25.00% after Finico launched an unconditional on-market bid at 1.2 cents a share for the stock it does not already own. At the other end, 4DMedical (ASX:4DX) fell 14.12%, even as it was named as Insignia Financial’s replacement in the S&P/ASX 200. That index news was not enough to stop selling.

Deals drove much of the action

Insignia Financial (ASX:IFL) spent the week moving through the last steps of its takeover by CC Capital. Shareholders backed the $4.80 a share cash scheme, then the Federal Court approved it. The scheme becomes effective on 17 April after lodgement with ASIC, trading is due to stop from the close that day, and payment is targeted for 28 April. The offer values Insignia at about $3.3 billion. For holders, the key point is simple: this is now very close to becoming cash in hand. Cuscal Limited (ASX:CCL) added 9.91% after raising $30 million in an institutional placement to help fund its $27 million Paymark acquisition. The stock issue was priced at a 5% discount to the last close, which usually puts some pressure on a share price. Instead, investors focused on what the deal could add. Cuscal says Paymark should lift earnings per share in FY27 and broaden its reach into New Zealand. Diversified United Investment (ASX:DUI) also moved ahead on corporate change after shareholders approved its merger with Australian United Investment Company. The attraction was clear. The combined group is expected to save about $700,000 a year in costs and lift dividends for eligible holders. Federal Court approval is still needed, so that remains the next checkpoint.

Fintech and platforms held up well

Netwealth Group (ASX:NWL) rose 9.76% after posting $4 billion in net inflows for the March quarter. Net inflows mean new client money coming in after money going out is deducted. That matters because it feeds future fee income. Funds under administration reached $125.8 billion, up 20.9% from a year earlier, even though markets fell during the quarter. Early gains did not fade after the stock re-opened. Buyers kept stepping in. AMP Limited (ASX:AMP) gained 4.40% after reporting a 45% lift in Platforms net cashflows to $1.1 billion and starting a $150 million share buyback. A buyback means the company uses its own cash to purchase shares, which reduces the number on issue. Investors often like that because each remaining share then represents a slightly bigger slice of the business. AMP also reported better outflows in super and investments, plus stronger bank deposits. Zip was the clearest case of sustained buying this week. The share price did not just jump on the opening reaction. It kept moving higher as investors absorbed the guidance upgrade to at least $260 million in FY26 cash EBTDA. New products such as Pay-in-2 in the US and ZMobile in ANZ also gave the market another reason to believe growth is not relying on one product alone.

Regulators and competition checks stayed important

Insurance Australia Group (ASX:IAG) rose 3.61%, but the bigger story was the ACCC opening a deeper review into its proposed RAC Insurance acquisition. The concern is that combining the businesses could reduce choice for Western Australian customers in motor and home insurance. The regulator is also looking at possible effects on smash repair services. In plain English, the question is whether fewer strong rivals could mean worse prices or service. Submissions are open until 4 May. Westpac Banking Corporation (ASX:WBC) fell 7.11% even though its trading update showed steady lending and deposit growth. Investors were more cautious because higher credit provisions cut into the picture. Credit provisions are money set aside in case some loans are not repaid. Westpac pointed to risks tied to the energy sector and overseas tensions, while costs linked to the RAMS mortgage sale also weighed on profit. Humm Group (ASX:HUM) finished the week up 2.40%, but the move after its re-opening went the other way. Those early gains evaporated as the market worked through the Takeovers Panel’s interim stay on earlier orders. The stay keeps things as they are for now while a review runs. That does not resolve the dispute, so uncertainty remains.

Funds and income names painted a mixed picture

GQG Partners (ASX:GQG) fell 4.49% after reporting funds under management of US$162.5 billion at the end of March, down from US$172.9 billion in February. The drop came mainly from net outflows, which means clients withdrew more money than they added. Investment gains softened the blow, but they did not offset the withdrawals. Australian Ethical (ASX:AEF) slipped 5.79% after saying funds under management fell 3.7% to $13.57 billion in the third quarter. The company still recorded positive superannuation inflows and launched a new private markets fund with a $125 million commitment from the Clean Energy Finance Corporation. Investors appear to be waiting to see if new business wins can make up for weaker investment markets. Other income-focused updates were steadier. Qualitas Real Estate Income Fund (ASX:QRI) lifted its annualised distribution rate to 7.25%, while Whitefield Income (ASX:WHI) maintained fully franked monthly dividends that imply an 8.3% annual yield based on its March-end price. Henderson Far East Income (ASX:HFL) reported a 23.3% net asset value return for the half year and kept its dividend appeal, though it also flagged geopolitical risks and tariff changes as issues to watch.