SGX Market Updates

Buyback Consideration at S$109M in July 2018, Led by 8 STI stocks


PUBLISHED ON |

01 August 2018

  • In the month of July 37 stocks repurchased 52 million shares/units for a total consideration of S$109 million. The buyback consideration was down 37% from S$174 million in June 2018 & up fourfold from S$27 million in July 2017.

  • The 37 stocks included eight STI constituents - UOB, DBS, Yangzijiang, Keppel Corp, OCBC, Sing Technologies, SATS & Sembcorp Industries; and made up as much as S$83 million, or 75%, of the S$109 million in consideration.

  • UOB led the July tally with the buyback of 1.2 million shares for a consideration of S$32.7 million. The largest buyback consideration posted by a non-STI stock was again by Wing Tai Hldgs which bought back 5.6 million shares for a consideration of S$10.7 million.




Total share buyback consideration for the month of July 2018 totaled S$109.0 million. As many as 37 stocks reported buybacks over the month, up from 33 stocks in June 2018.

Over the month of July, the 37 stocks bought back a total of 52.455 million shares or units. The S$109 million buyback consideration was down 37% from S$174 million in June 2018 (click here for more details).

Year-on-year, the consideration for July 2018 was up fourfold from S$27 million in July 2017. A similar trend was observed for the first seven months of 2018 with the total buyback consideration of S$948 million, comparing to S$228 million for the first seven months of 2017.

During the month a number of stocks commenced new mandates including – DBS Group Holdings, Keppel REIT, Ho Bee Land, Sembcorp Marine, Duty Free International, Kimly, Valuetronics Holdings, XMH Holdings, Tuan Sing Holdings, Ban Leong Technologies and Kim Heng Offshore & Marine Holdings. Keppel REIT Management bought back 3.5 million units of Keppel REIT between 27 July and 31 July.

The Straits Times Index (STI) gained 1.6% for the month of June bringing its dividend inclusive decline in total return to 0.3% for the first seven months of 2018. This compared to the benchmarks of Australia, Hong Kong and Japan, which have registered SGD denominated average total returns of 1.7% for the seven months.



Monthly Share Buyback Consideration (S$ Million) & STI Month-End Levels



Source: SGX My Gateway (Data as of 31 July 2018)

The five stocks with the largest buyback consideration value last month were United Overseas Bank, DBS Group Holdings, Wing Tai Holdings, Yangzijiang Shipbuilding (Holdings) and Keppel Corporation which made up 74% of the S$109.0 million in total consideration.

The largest buyback consideration posted by a non-STI stock in July was Wing Tai Holdings which also posted the largest buyback consideration by a non-STI stock in the preceding month. The leading property and lifestyle company, which has been listed since 1989, bought back 5,561,400 shares in July, after buying back 2,278,500 shares in June. 

8 STI constituents made up as much as S$83 million, or 75%, of the S$109 million in consideration.

The table below summarises the buyback considerations in July 2018. 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.

Stock / REIT Manager Start
Date
Mandate Total No. of
Shares/units
Bought back
in July 2018
Total
Consideration
for
July 2018
$
Cum No. of
Shares/units
Purchased to
End of July
Percent
%
UNITED OVERSEAS BANK 20/04/2018 83,042,898 1,235,404 32,754,274 3,071,467 0.18
DBS GROUP HOLDINGS 25/04/2018 51,277,414 854,800 21,554,254 854,800 0.03
WING TAI HOLDINGS 23/10/2017 77,447,436 5,561,400 10,716,024 7,839,900 1.01
YANGZIJIANG SHIP (HLDGS) 27/04/2018 396,883,800 9,914,400 8,715,383 23,072,800 0.58
KEPPEL CORPORATION 20/04/2018 90,807,408 939,000 6,642,716 4,000,000 0.22
OVERSEA-CHINESE BANK CORP 30/04/2018 209,128,622 550,000 6,279,661 4,625,000 0.11
KEPPEL REIT 20/04/2018 169,473,366 3,500,000 4,081,248 3,500,000 0.10
SING TECHNOLOGIES ENG 20/04/2018 62,407,292 1,000,000 3,250,648 1,321,400 0.04
SATS 21/07/2017 22,384,146 570,600 2,809,265 6,840,100 0.61
SINGAPORE POST 11/07/2018 226,352,024 1,590,000 2,122,320 1,590,000 0.07
OXLEY HOLDINGS 31/10/2017 147,410,998 3,600,000 1,285,092 9,300,000 0.32
HO BEE LAND 26/04/2018 33,286,030 490,000 1,149,324 490,000 0.07
SEMBCORP INDUSTRIES 20/04/2018 35,744,450 350,000 938,490 550,000 0.03
SINGHAIYI GROUP 26/07/2018 428,511,187 8,123,000 805,618 20,334,900 0.71
SEMBCORP MARINE 18/04/2018 208,880,250 400,000 738,828 400,000 0.02
DUTY FREE INTERNATIONAL 28/06/2018 121,345,399 3,421,000 727,592 3,421,000 0.28
KIMLY 23/01/2018 115,778,673 2,000,000 714,962 2,000,000 0.17
HRNETGROUP 27/04/2018 101,140,687 800,000 701,889 3,590,000 0.36
SILVERLAKE AXIS 26/10/2017 264,661,760 777,700 396,832 177,168,100 6.69
ROXY-PACIFIC HOLDINGS 06/04/2018 119,009,499 850,000 396,242 6,173,900 0.52
VALUETRONICS HOLDINGS 24/07/2017 42,050,133 435,500 279,913 435,500 0.10
CDW HOLDING 22/06/2018 22,964,400 980,600 236,144 1,000,600 0.44
XMH HOLDINGS 25/08/2017 11,128,182 1,000,200 233,361 1,000,200 0.90
HC SURGICAL SPECIALISTS 26/09/2017 14,963,563 300,000 201,473 759,900 0.51
TUAN SING HOLDINGS 19/04/2018 118,689,278 500,000 199,618 500,000 0.04
HEALTH MANAGEMENT INT 30/10/2017 82,086,200 340,000 197,512 500,000 0.06
STRACO CORPORATION 27/04/2018 86,037,738 215,200 165,698 940,200 0.11
BAN LEONG TECHNOLOGIES 25/07/2017 11,522,200 542,000 130,442 542,000 0.47
PEC 27/10/2017 25,461,779 207,300 124,690 407,300 0.16
HI-P INTERNATIONAL 20/04/2018 80,848,740 100,000 116,278 3,728,700 0.46
AEM HLDGS 26/04/2018 27,014,073 100,000 104,267 300,000 0.11
SEVAK 30/04/2018 1,234,730 26,875 76,849 30,475 0.25
SARINE TECHNOLOGIES 24/04/2018 35,134,212 72,900 65,309 666,400 0.19
SPACKMAN ENT GROUP 26/04/2018 69,267,370 1,000,000 48,149 1,750,000 0.25
TIONG SENG HOLDINGS 25/04/2018 45,962,384 37,000 14,455 238,100 0.05
S I2I 30/04/2018 1,234,730 2,500 6,901 3,600 0.03
KIM HENG O&M HLDGS 23/04/2018 70,900,000 67,700 5,867 67,700 0.01
Total 52,455,079 108,987,587

* Note percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution.
** Note Keppel REIT Management bought back 3.5 million units of Keppel REIT between 27 July and 31 July.
Source: SGX My Gateway (data as of 31 July 2018)



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.







This article is provided by SGX My Gateway.



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