Here’s why the Macquarie (ASX:MQG) share price sank 5% today

The Macquarie Group Ltd (ASX:MQG) share price was out of form and sank 5% on Monday. Here’s why its shares tumbled lower today…
The post Here’s why the Macquarie (ASX:MQG) share price sank 5% today appeared first on The Motley Fool Australia. –

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The Macquarie Group Ltd (ASX: MQG) share price was well and truly out of form on Monday.

The investment bank’s shares tumbled lower and ended the day with a 5% decline to $150.59.

Why did the Macquarie share price tumble on Monday?

There have been a couple of potential catalysts for the weakness in the Macquarie share price on Monday.

The first is the investigative report undertaken by the Fairfax press relating to analytics company Nuix Ltd (ASX: NXL).

Nuix is regarded by some as Macquarie’s greatest investment. However, with the Nuix share price hitting a record low today, for many investors it will be among their worst.

As we explained here earlier, the report revealed the close ties between Macquarie’s Dan Phillips and David Standen and Nuix founder Dr Anthony Dante Castagna. The latter was jailed for tax fraud and money laundering while running Nuix before being acquitted.

The report also claims that Castagna left Nuix’s board the day that its ASX float prospectus was launched, meaning that few retail investors would have been aware that he was involved with the company.

Given how Nuix has fallen well short of its prospectus forecasts, this has raised eyebrows. Though, this morning Nuix hit back at the report, stating that it has robust processes in place to measure forward indicators of performance. It is also committed to the highest standards of corporate governance.

What else is weighing on its shares?

Also weighing on the Macquarie share price today was the fact that its shares were trading ex-dividend for its partially franked final dividend.

This $3.35 per share dividend will now be paid to eligible shareholders on 2 July.

With the Macquarie share price dropping $7.75 today, this dividend accounts for just over 40% of today’s decline or approximately 2.1% in real terms.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Macquarie (ASX:MQG) share price sank 5% today appeared first on The Motley Fool Australia.

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