Shares in South Africa’s steel and vanadium producer Highveld Steel and Vanadium (Hiveld) on Monday plunged 28% after the payment of the company’s interim and special dividends.
On August 1, Hiveld declared an interim dividend per share of 1 050 cents from 120 cents in the previous comparative period and a special dividend per share of 650 cents, for a total dividend of R17 a share.
At 10.20am, Hiveld’s shares on the JSE Securities Exchange were quoted at R48,95, down 28% or R19,25 from its previous close.
“Hiveld is down after going ex-dividend. With steel and vanadium prices falling, Hiveld’s share price is going to continue to remain under pressure. Hiveld is set for flat or negative earnings growth,” an analyst said.
“The cycle for the commodities that Hiveld produces have without doubt peaked,” he added. — I-Net Bridge