Just reading the early morning commentary and headline:
"London open: SSE leads the fallers in early trading" (Sharecast).
Basically, Scottish and Southern are down 72p in the first half hour of trading and the "journalist" has linked this to the fine imposed on Centrica:
"Energy supplier Scottish & Southern Energy was the heavy faller, tumbling 4.85%, on the same day that utilities firm British Gas (owned by Centrica) received a £2.5m fine for mishandling customer complaints. Centrica also fell lower, albeit by a lesser extent (-1.2%)."(Sharecast).
I guess the assumption is that SSE will be similarly hit?
However, what the writer has clearly failed to research and note, or ignore for the headline, is the fact that SSE also went ex. dividend today to the tune of 52.6p.
The mechanics of ex.dividend being that this is now 52.6p of "returned capital" that is not available to anybody buying the shares from today hence it generally coming straight off the top of the share price at opening.
"Energy supplier Scottish & Southern Energy was the heavy faller, tumbling 4.85%, on the same day that utilities firm British Gas (owned by Centrica) received a £2.5m fine for mishandling customer complaints. Centrica also fell lower, albeit by a lesser extent (-1.2%)."(Sharecast).
I guess the assumption is that SSE will be similarly hit?
However, what the writer has clearly failed to research and note, or ignore for the headline, is the fact that SSE also went ex. dividend today to the tune of 52.6p.
The mechanics of ex.dividend being that this is now 52.6p of "returned capital" that is not available to anybody buying the shares from today hence it generally coming straight off the top of the share price at opening.
So, starting with yesterdays closing price of 1401p.
- Lets take the 52.6p dividend off which gives a new base price of 1348.4p.
- Using the articles 4.85% fall gives us 67.95p. Less the dividend of 52.6p gives us 15.35p due to the "market" (67.95p-52.6p).
- Using the articles 4.85% fall gives us 67.95p. Less the dividend of 52.6p gives us 15.35p due to the "market" (67.95p-52.6p).
- 15.35p divided by 1348.4p gives us a 1.14% fall (excl. dividend).
So thats a 1.14% fall v 1.2% experienced by Centrica.
An oversight on behalf of the writer perhaps?
Still all eyes on the US stand off though.
Related article:
- www.sharecast.com: London open: SSE leads the fallers in early trading
So thats a 1.14% fall v 1.2% experienced by Centrica.
An oversight on behalf of the writer perhaps?
Still all eyes on the US stand off though.
Note: I see that the market commentary has been changed since I published this and now better reflects the situation. As such the paragraph shown in italics above has been replaced with:
"Energy supplier Scottish & Southern Energy was the heavy faller, tumbling 4.85% after going ex dividend." (Sharecast).
"Energy supplier Scottish & Southern Energy was the heavy faller, tumbling 4.85% after going ex dividend." (Sharecast).
Related article:
- www.sharecast.com: London open: SSE leads the fallers in early trading
No comments:
Post a Comment