By Dipo Olowookere
The Nigerian Stock Exchange (NSE) on Tuesday, March 10, 2020, announced the adjustment of the share price of Zenith Bank Plc for the dividend recommended by the board of directors few days ago for the year ended December 31, 2019.
On Monday, the share price of the top Nigerian lender closed at N16.95 per unit, but with the proposed dividend of N2.45 each, which had yesterday as its qualification date, the price was subsequently adjusted to N14.45 per unit.
Business Post reports that when companies recommend payment of dividends to shareholders, whether interim or final, the stocks are marked down by deducting the dividend value from the closing prices of the shares as at the qualification dates.
In a notice to stockbrokers today, the stock exchange disclosed that, “The equity price of Zenith Bank Plc was adjusted today March 10, 2020 for a dividend of N2.50k as recommended by the company board of directors. The last close price was N16.95, while the ex-div price is N14.45.”
Also, the NSE adjusted the share prices of three other companies listed on its trading platform on Monday, March 9, 2020 for their recommended dividends. The affected firms were United Capital, Africa Prudential and Infinity Trust Mortgage Bank.
On the part of Infinity Trust Mortgage Bank, its price was rounded up by the system to N1.36 in conformity with the price step methodology. Consequently, its stock price moved from N1.39 to N1.36.
For United Capital, which declared a dividend of 50 kobo per share, its price was adjusted from its qualification date price of N3.10 to N2.60, while the share price of Africa Prudential, which proposed a dividend of 70 kobo, moved to N4 each from N4.70 per unit.
As at the time of filing this report, the share prices of Zenith Bank, United Capital, Infinity Trust Mortgage Bank and Africa Prudential were at N13.05, N2.11, N1.52 and N3.60 respectively.
