Share buybacks on SGX still going strong in August

The Singapore Exchange Centre along Shenton Way.
The Singapore Exchange Centre along Shenton Way.PHOTO: REUTERS

Companies listed on the Singapore Exchange (SGX) continued their momentum in share buybacks this month, with 23 stocks reporting buybacks totalling more than $100 million in the first 12 sessions of August, SGX market strategist Geoff Howie said in a market update.

Led by DBS Group Holdings, United Overseas Bank (UOB) and CapitaLand, the companies have bought back 17.7 million shares for a consideration of $116.5 million in the month to date, compared with last month's buyback consideration of $109 million and last August's consideration of $59.7 million.

Mr Howie noted that this is the seventh successive month the $100 million threshold has been crossed. In the year to date, buyback consideration has exceeded $1 billion.

The five largest buyback considerations so far this month were made by DBS, UOB, CapitaLand, City Developments and OCBC Bank - all stocks on the Straits Times Index (STI). Hi-P International's buyback of 1.39 million shares for $1.47 million was the largest buyback consideration by a non-STI stock in the month to date.

Seven stocks commenced new mandates in August's first 12 sessions. They are City Developments, Hi-P International, Singapore Shipping Corporation, Ban Leong Technologies, Japan Foods Holding, Maxi-Cash Financial Services Corporation and Star Pharmaceutical.

In share buyback transactions, share issuers repurchase some of their outstanding shares from shareholders through the open market, for reasons including a move to align stock valuations with balance sheet objectives. Once bought back, the shares are converted into treasury shares and no longer categorised as outstanding shares.

A version of this article appeared in the print edition of The Straits Times on August 21, 2018, with the headline 'Share buybacks on SGX still going strong in August'. Print Edition | Subscribe