Nedbank shares fall 11pc over Covid-19

SHARES in South Africa‘s Nedbank fell over 11 percent on Wednesday, a day after it withdrew 2020 financial guidance and put some key targets under review due to the COVID-19 pandemic.
The decline in the bank’s stock, which closed 11,81 percent lower, compared to an 8 percent fall in the Johannesburg Stock Exchange’s banks index.
Nedbank however said the drop in its share price was because Wednesday was the cut-off date from which new shareholders will no longer benefit from its last declared dividend, which usually causes a stock to fall by the same amount as the dividend payment.
A Nedbank spokeswoman said that when adjusted for this, Nedbank’s stock was only down 5,7 percent – a better performance than many of its peers. — Reuters