Datatec shares rise after company declares special dividend

Datatec added 2.15% on Wednesday to settle at R56.50 per share, buoyed by its announcement of a special dividend. On the 13th of November 2017, the board announced its intention to declare a special dividend of $350mn, or around R5bn, pursuant to the sale of Westcon Americas. Following this, the board has now decided to declare a special dividend of R23 per share to ordinary shareholders. Furthermore, shareholders will also have the option to receive the dividend in the form of a scrip distribution of fully-paid ordinary shares. If shareholders elect to receive shares instead of cash, the board will use the full undistributed cash amount to undertake a general buyback of shares.

In currencies, the rand was mostly unchanged on Wednesday in a somewhat choppy trading session. After a previous close of R13.671/$ on Tuesday, the local currency got off to a strong start as it moved to a high of R13.60/$ at 09:50. From there, the rand erased all of its gains weakening to a low of R13.745/$ at 15:20, before finally trimming its losses. This local currency has managed to hold onto gains made against the dollar earlier on in the week and is currently R13.68/$.

In Asia, markets are awash with red, dragged down by last night’s sharp decline in US-based technology shares. The Hang Seng featured as the region’s worst performer, with the index dropping 1.28%, on track to end lower for the fourth consecutive day. The Australian ASX lost 0.6% to 6,059.50 index points, followed by a 0.26% decline in the Shanghai Composite. The Japanese Nikkei was also trading lower, albeit only marginally so, with the index dropping 0.13% to just below the 22,570 index point level.

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