Why Bursa’s no to Affin Bank dividend waiver is a positive

“If Affin Bank is allowed to reduce its dividend, more companies may try to follow suit and reduce paying out what they had promised” points out one fund manager. Following the rejection, the dividend of seven sen will be reinstated, Affin Bank has since clarified.

AT a time when many large enterprises are shaving their dividend payments to conserve cash, the case of Affin Bank Bhd is noteworthy.This week, the bank said that its bid to cut its full-year dividend for 2019 to five sen a share from seven sen was rejected by Bursa Malaysia.

The announcement sent shock waves throughout the capital market.