Cia. Energetica de Minas Gerais SA declined the most in six weeks in New York as the deadline expired to receive a $769 million dividend from the Brazilian electric utility.
Cemig’s American depositary receipts retreated 5 percent to $12.23 at the close of trading, the steepest one-day slide since Nov. 8. Trading volume was 134 percent of the three-month average. Brazil’s stock market was closed for the Christmas holiday.
“Brazil is closed today and tomorrow, and the stock goes ex-dividend on the 26th, so for all practical purposes, its already ex-dividend in the U.S.,” Gabriel Salas, an analyst at JPMorgan Chase & Co. in New York, said in a phone interview.
Ex-dividend refers to the date on which the seller of a stock has the right to collect the dividend instead of the buyer. Shares typically fall by the amount of the expected payout after going ex-dividend, according to Investopedia.com.
Cemig said in a Dec. 21 filing that its board had decided to pay an extraordinary dividend of 1.6 billion reais ($769 million), or about 1.88 reais per share.