Dipo Olowookere
By Dipo Olowookere
The equity prices of two companies listed on the Nigerian Exchange (NGX) Limited, Wema Bank Plc and Okomu Oil Palm Plc, have been adjusted.
The modifications to the values of these two securities were effected at the resumption of the market on Friday, May 14, 2021, by the exchange.
For the past two days, the stock market in Nigeria was shut down as a result of the public holidays declared by the federal government on Wednesday and Thursday to mark Eid al-Fitr after Muslims ended their one-month fast called Ramadan.
On the last trading day, which was on Tuesday, May 11, 2021, the share price of Wema Bank was 59 kobo but when the market opened this morning, the price was 55 kobo, indicating that 4 kobo has been deducted.
The deduction was the dividend proposed by the board of directors of the financial institution to be paid to shareholders of the bank for the 2020 fiscal year.
As it is in the practice of the exchange, when a company recommends a cash reward to shareholders, the value is removed at the next trading session from the closing price of the stock on the qualification.
Similarly, Okomu Oil, which closed at the stock market on Tuesday at N103.50, had its value modified to N96.50 to reflect the deduction of the N7 dividend the board declared.
In the 2020 accounting year, Wema Bank maintained its dividend payout of 4 kobo, representing 33 per cent of its net profit, in line with the directive of the Central Bank of Nigeria (CBN) concerning the payment of dividends by deposit money banks (DMBs).
In the period, the lender recorded a profit before tax of N5.9 billion in contrast to N6.8 billion in 2019, while the profit after tax stood at N4.6 billion compared with N5.2 billion in the preceding year.
On May 25, 2021, Wema Bank will pay the dividend if it is approved by the shareholders at the Annual General Meeting (AGM) scheduled for the same day in Lagos.
On the part of Okomu Oil, its AGM has been fixed for May 26, 2021, the same day the N7 dividend would be paid to qualified shareholders.
In the 2020 year reporting year, the company grew its profit after tax by 54.1 per cent to N7.78 billion from N5.05 billion of the previous year.
