Bright Packaging share price firmer despite dividend cancellation

KUALA LUMPUR: Shares of Bright Packaging Industry Bhd
managed to extend their gains on Friday, rising to a high of RM1.13
despite the company's decision to revoke the earlier 100% dividend
policy payout.
At 10.21am, it was up two sen to RM1.09. There were 856,500 shares done at prices ranging from RM1.09 to RM1.13.
The
FBM KLCI was up 4.9 points to 1,711.24. Turnover was 129.54 million
shares valued at RM209.37mil. There were 189 gainers, 141 losers and 223
counters unchanged.
On Thursday, the company announced the new
board had revoked the 100% dividend policy payout for the next five
years as for the time being, as the focus would be on the growth of the
company.
"Based on the current assessment of cash needs of our
business, the company requires the earnings to be re-invested into the
company to build its capacity and that excessive funds are required for
the reinvestment for business expansion.
"The board takes
cognisance that if there is any excess profits or cash, the board shall
distribute dividends at a later date," it said.
To recap, the
decision to pay out 100% of all its distributable profits as dividend
was made on Jan 18. This saw the share price climbing to the year's high
of RM2.15 on Feb 7.
On Feb 21, four shareholders of Bright Packaging Bhd, led by Datuk Wira Syed Ali Abbas Alhabshee, have succeeded in their proposals to remove four incumbent directors at an EGM and vote themselves in as new directors.
The share price fell to a low of 86 sen on Tuesday before staging a mild recovery over the past three days.