Investors did not respond to the N12.55 dividend declared by the board of directors of Nestle Nigeria Plc, on Wednesday, as the company‘s share price remained at N270 per share on Thursday, just as 76,454 shares of the company, valued at N20.96m changed hands.
On Wednesday, when the news about the result got to the stock market, the company‘s share price did not move, but 111,298 units of the company‘s shares changed hands, valued at N31.35m. Analysts form Meristem Securities, said the zero growth dividend triggers question. The report tagged, ”Zero growth dividend triggers question, said, ”In her tradition, the largest cap defensive Nestle Nigeria Plc, on Thursday, trickled in the news of its final dividend of N10.60 to consolidate the interim dividend of N1.95, translating to an annual dividend yield of 4.65 per cent, based on the closing price of N270.‘‘
On Wednesday, the researchers said, ”relative to activity level on Tuesday, market participants were upbeat mostly on banking stocks. Volume and value of transaction recorded impressive growth, though the market benchmark index, NSE ASI appreciated by 33 basis points. Big thanks to major heavyweight stocks and the banking sector with appreciable price gains. The NSE ASI and market capitalisation settled at 23,033.02pts and N5.55tr [US$36.98bn] in that order.”
The ASI dipped by 48.02 points or 0.2 per cent on Thursday, to close at 22,985.00, down from 23,033.02 0n Wednesday, while the market capitalisation fell by N12bn or 0.2 per cent to close at N5.53tn.