Investors may be disappointed with no annual dividend growth from FTSE 100 bank HSBC (HSBA) despite it reporting a stronger capital position.

The bank’s common equity tier 1 ratio, a measure of the ability of the balance sheet to withstand economic shocks, has jumped to 14.5% from 13.6% a year ago.

HSBC has decided to maintain its dividend at $0.51 per share. That puts the shares at 729.4p on a 5% dividend yield. While HSBC’s yield is still attractive, it is less generous than the 6% prospective yield from Lloyds Banking (LLOY).

Shares in HSBC were weak after its 2017 results (published on 20 Feb) because its fourth quarter underlying pre-tax profit of $3.6bn was 8% below the consensus forecast.

COULD IT BE DEMERGER #2 FOR BHP? 

Diversified natural resources producer BHP Billiton (BLT) could get rid of its US shale oil and gas unit faster than previously expected. It says trade sale bids could be reviewed later this year.

It is also exploring potential asset swap opportunities and an exit via a demerger or IPO (initial public offering).

BHP demerged various coal and metal assets in May 2015 as a business now known as South32 (S32). Shares in the separated company have risen by just over 50% since the BHP spin-off.

WILL ACACIA SELL A STAKE IN ITS ASSETS?

Troubled gold producer Acacia Mining (ACA) has received interest from unnamed Chinese parties interested in making an investment at the asset level.

That’s prompted Acacia to explore the value of selling a stake in some or all of its Tanzanian operations. Shares in the company have fallen 5% to 155.95p since the news, perhaps a reflection that the interest doesn’t constitute a full takeover bid.

Acacia has struggled over the past year due to a ban in Tanzania on exporting unprocessed ore, hurting its sales and putting financial pressure on the business.

Outside of Tanzania, Acacia has exploration interests in Kenya, Burkina Faso and Mali.

FIDESSA: BID WAR ON THE HORIZON?

Trading systems supplier Fidessa (FDSA) has received a surprise takeover offer from Swiss rival Temenos. That sent shares in the FTSE 250 constituent soaring by more than 20%.

The proposal is worth £36.467. It is structured as £35.67 per share for the business and the rest being Fidessa’s recently-declared second half and special dividends.

While these events have sent Fidessa’s stock soaring to unprecedented highs of £35.45, some observers believes there could be a bid battle for the company. Trade buyers FIS Global and Ion Investment Group look the likeliest candidates to also move on Fidessa. (DC/SF)

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