More than 13 million shares were repurchased by 18 companies in June, with total buyback consideration at S$51.5 million. This was up 5.9% from S$48.6 million in consideration for May 2017.
The five stocks with the largest buyback consideration value in May included two STI stocks. The five stocks were Oversea-Chinese Banking Corp (OCBC), SIA Engineering Company, Singapore Post, Hi-P International and Telechoice International.
For a fourth consecutive month, OCBC had the highest buyback consideration for the month, taking the total number of shares purchased under the 12 month mandate (effective 28 April) to 7.2 million shares.
In the month of June 2017 there were a total of 13,440,900 shares repurchased by 18 companies, with a total consideration of S$51.5 million. Buyback consideration was up 5.9% from the S$48.6 million reported for May 2017.
Buybacks in June 2017 have taken the total share buyback consideration for the 2017 YTD to S$200.8 million. This compares with S$544 million for the first six months of 2016.
June’s share buyback consideration was down 76.6% YOY from S$218 million in June 2016. Over the past 12 months, the STI rallied 13.6% in price, generating a total return of 17.8%.
The five stocks with the largest buyback consideration value last month were Oversea-Chinese Banking Corp (OCBC), SIA Engineering Company, Singapore Post, Hi-P International and Telechoice International. For a fourth consecutive month, OCBC had the highest buyback consideration in the month, taking the total number of shares purchased on to the 12 month mandate effective 28 April to 7.2 million.
As illustrated below, monthly total buyback consideration in June 2017 was at the highest level since September 2016.
Monthly Share Buyback Consideration (S$ Million) & STI Month-End Levels
Source: SGX (data as of 30 June 2017)
Buybacks in June
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 table below summarises the buyback considerations in June 2017. The table is sorted by the value of the total consideration amount, which is the product of the number of shares purchased and the purchase price of the shares.
|Name||Start Date||Mandate||Total No. of shares bought in June||Total Consideration: June S$||Cum No. of Shares Purchased to End of June||Pct* %|
|Oversea-Chinese Banking Corp||28/04/2017||209,124,917||4,200,000||44,797,945||7,200,000||0.172|
|SIA Engineering Company||22/07/2016||22,478,084||462,100||1,907,574||5,129,900||0.4564|
|Tiong Seng Hldgs||26/04/2017||45,962,384||1,602,500||439,942||1,892,900||0.417|
|Hotung Investment Hldgs||13/04/2017||9,720,378||200,300||368,770||484,200||0.498|
|Global Palm Resources Hldgs||25/04/2017||19,911,640||859,600||337,989||859,600||0.4317|
|Q & M Dental Grp||27/04/2017||79,703,066||459,700||301,499||459,700||0.058|
|Sin Heng Heavy Machinery||26/10/2016||11,461,880||605,800||213,760||605,800||0.529|
|Zhongmin Baihui Retail Grp||26/04/2017||19,216,020||50,000||54,071||92,600||0.05|
|PACC Offshore Services Hldgs||27/04/2017||181,382,010||119,200||35,105||119,200||0.007|
|Hwa Hong Corp||27/04/2017||65,317,400||56,000||17,133||216,000||0.033|
Source: SGX (data as of 30 June 2017)
*percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution
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).