I have got Affin Bank shares purchased under Rakuten Trade trading account. Today I received a notice from Rakuten Trade via email that Affin Bank has got a corporate exercise item which I have to attend to. I found that Affin Bank has a DRP (Dividend Reinvestment Plan) exercise option whereby shareholders can opt to have their dividends used to repurchase Affin Bank shares.
The setting to do this in Rakuten Trade is "My Account" -> "Corporation Action Subscription". There's some stamp duty charges which will be credited from your cash account in Rakuten Trade.
Rakuten Trading account is a nominees account so the shares are purchased by Rakuten on my behalf, the shares are held in a nominees account so I need to act on corporate exercices via the Rakuten Trade website/App. For other trading accounts that are not nominee accounts, Affin Bank's DRP can be subscribed via their share registrar Tricor Investor J& Issuing House.
I'm making a loss on my investments in Affin Bank as the price has dropped quite a bit since I bought. I feel the bank is not as prudent as other bank, they have been doing brand identity change every other year but with minimal results. However, I still believe bank stocks are very valuable as banking license is limited and hence barrier of entry is very high. It's not easy for just any player to open a bank.
📍Links
If you feel my article has given some value to you, you can sign up for Rakuten Trade to trade and buy Malaysia stocks using my referral code 👉🏼 4ffdWBHYBI.
