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Strong Buyback Momentum Continued into Mid-August

SGX logo Feature

  • For the first 12 sessions of August 2018, share buyback consideration has exceeded S$100 million. This is the seventh successive month the S$100 million threshold has been crossed, with buyback consideration in excess of S$1 billion for the 2018 YTD.
  • The 23 stocks that have conducted share buybacks in the August MTD have bought back a total of 17.7 million shares for a consideration of S$116.5 million. The buyback consideration was led by DBS Group Holdings, United Overseas Bank and CapitaLand.
  • The August MTD has also seen fresh buyback mandates commence for City Developments, Hi-P International, Singapore Shipping Corporation, Ban Leong Technologies, Japan Foods Holding, Maxi-Cash Financial Services Corporation & Star Pharmaceutical.

Total share buyback consideration for the first 12 sessions of August 2018 totaled S$116.5 million. As many as 23 stocks reported buybacks over the 12 sessions. These stocks bought back a total of 17.712 million shares. The S$116.5 million buyback consideration is already higher than last month’s buyback consideration of S$109.0 million and August 2017’s total consideration of S$59.7 million.

During the 12 sessions seven stocks have commenced new mandates.These included City Developments, Hi-P International, Singapore Shipping Corporation, Ban Leong Technologies, Japan Foods Holding, Maxi-Cash Financial Services Corporation & Star Pharmaceutical. Aside from these seven stocks, another 11 stocks commenced buyback mandates last month. Note Ban Leong Technologies buyback in July was on a previous mandate (click here for more).

Monthly Share Buyback Consideration

The five largest buyback considerations in the month-to-date have been maintained by five Straits Times Index (”STI”) stocks –  DBS Group Holdings, United Overseas Bank, CapitaLand, City Developments and Oversea-Chinese Banking Corporation. Hi-P International posted the largest buyback consideration by a non-STI stock in the August month-to-date. The contract manufacturing provider bought back 1,390,900 shares for a consideration of S$1,472,035.

The table below summarises the buyback considerations in the August month-to-date The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions.

purchasing price of the transactions.

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here).