ASX Falls After A$150 Million Capital Charge, Dividend Cut
An electronic board displays stock information at the Australian Securities Exchange, operated by ASX Ltd., in Sydney, Australia.
Photographer: Brendon Thorne/BloombergASX Ltd. shares hit an eight-year low after Australia’s corporate regulator imposed a A$150 million ($99.6 million) capital charge on the firm, prompting the embattled exchange operator to slash its dividend.
The stock dropped 5.7% to its lowest since October 2017 after ASX trimmed its dividend payout ratio policy range to between 75% and 85% of underlying net income, down from 80% and 90%, to support the charge. The Australian Securities & Investments Commission unveiled the additional capital requirement along with a package of reforms on Monday amid an ongoing probe into the company.