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…

| More on:
Scared, wide-eyed man in pink t-shirt with hands covering mouth

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Bank Shares

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Bank Shares

Are Westpac shares a buy following the bank's big tech update?

Is now a good time to buy the banking giant's shares? Let's find out.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Bank Shares

Own CBA shares? It's payday for you!

A dividend is heading to CBA shareholders’ bank accounts.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Are CBA shares really worth $120?

It has been a good year for ASX bank shareholders.

Read more »

a group of people sit around a computer in an office environment.
Bank Shares

Westpac shares push higher on $9.8b technology simplification plan

Westpac plans to spend big on technology to close the gap on its rivals.

Read more »

A worried woman looks at her phone and laptop, seeking ways to tighten her belt against inflation.
Economy

NAB boss issues dire prediction for Aussie economy

NAB’s CEO has issued a stark warning on the outlook for Australia’s economic growth.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.
Bank Shares

ANZ shares charge higher on $57.5 million class action settlement news

ANZ shares have continued their positive run on Monday.

Read more »

Two people comparing and analysing material.
Bank Shares

Better buy: CBA or Westpac stock?

Which ASX bank share is a better buy?

Read more »