MediaTek gives stellar ex-dividend performance, fills 70% of price gap

The China Post news staff

MediaTek yesterday gave a strong ex-dividend performance, filling over 70 percent of the price gap left by the ex-dividend at one point during the trade. Ex-dividend refers to the reduction of stock price by the same margin as the dividends it will distribute. MediaTek this year will dole out cash dividends of about NT$9 a share. It opened yesterday at the ex-dividend price of NT$239 and had surged by as much as NT$6.5 in morning trade, recovering about 70 percent of the price shortfall. Yet the stock lowered a bit later in the trade and closed at NT$243.50. Tech shares have mostly given lackluster ex-dividend performances recently. MediaTek, however, was an exception due to various positive developments, including its denial of reports that it’s suffering from a material shortage, and its strategic partnership with Twitter. Separately, share prices in Taiwan closed down 0.20 percent, with the benchmark weighted index closing below the psychological 7,100-point mark.

The local bourse was dragged down by concerns over the domestic economic slowdown after local media reported that the government might revise downward the nation’s economic growth forecast for 2012 in late July.

The weighted index ranged between a high of 7,147.38 and a low of 7,085.38 before closing down 14.23 points, or 0.20 percent, at 7,090.04 on turnover of NT$55.94 billion.