SGX Market Updates

25 SGX Companies Conducted Share Buybacks in June 2019


PUBLISHED ON |

02 July 2019

  • In June 2019, 25 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$55 million. This was down from S$123 million in May 2019 and down from S$174 million in June 2018.

  • After 13 stocks commenced new buyback mandates in May, seven stocks commenced new buybacks in the month of June 2019:  Boustead Singapore, Telechoice International, KSH Holdings, CDW Holding, Goodland Group, Global Palm Resources Holdings and Straco Corporation. 

  • Buyback consideration was led by OCBC & DBS. The current mandate has seen DBS buy back 0.121% of its shares & OCBC buy back 0.118% as of 30 June. The previous year mandate saw DBS buy back 0.478% and OCBC buy back 0.378% of its shares.




Total share buyback consideration for the month of June 2019 totaled S$55.1 million. There were 25 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 37.5 million shares or units.

The S$55.1 million in buyback consideration was less than the buyback consideration of S$123.1 million filed in May 2019 (click here for more) and more similar to the average total monthly consideration of S$58 million over the preceding six months.

Last month, the Straits Times Index (“STI”) recovered 6.5%, retracing much of the ground lost in May which saw a 7.0% decline in total return. As discussed here June’s gains took the STI total return for the first six months of 2019 to 10.5%. This was in-line with the region with the FTSE All-Share ASEAN Index which gained 10.2% and the FTSE Asia Pacific Index which gained 9.6%.



Monthly Share Buyback Consideration & STI Month-End Levels



Seven Stocks Commenced New Mandates Commenced in June 2019

The table below summarises the buyback considerations in June 2019. 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. The 7 stocks that commenced new mandates are highlighted in Bold.

Stocks Number of
Shares/units
Authorised for Purchase
in Current Mandate
Total Number of
Shares/units Purchased
in June 2019
Total Buyback
Consideration
in June 2019
(including stamp duties,
clearing changes etc.)
paid or payable
for the shares S$
Cumulative Number of
Shares/units purchased
in Mandate to date*
OVERSEA-CHINESE BANKING CORPORATION 212,257,935 2,250,000 $24,753,300 5,030,000
DBS GROUP HOLDINGS 51,165,438 500,000 $12,056,286 3,100,000
OLAM INTERNATIONAL 159,528,593 2,437,300 $4,673,113 2,547,900
KEPPEL REIT MANAGEMENT 170,210,715 3,350,000 $4,165,898 9,740,700
STAMFORD LAND CORPORATION 86,408,798 5,368,200 $2,561,500 43,346,700
BOUSTEAD SINGAPORE 49,298,483 3,298,300 $2,544,854 3,298,300
GLOBAL INVESTMENTS 168,741,864 12,331,600 $1,643,505 24,610,300
TELECHOICE INTERNATIONAL 45,438,718 2,600,000 $573,952 2,600,000
KSH HOLDINGS 56,973,564 1,100,000 $468,220 1,100,000
SINGAPORE EXCHANGE 107,164,240 31,900 $235,291 910,748
SINGAPORE SHIPPING CORPORATION 43,701,979 698,400 $200,179 12,520,200
AEM HOLDINGS 27,096,300 200,000 $185,124 1,100,000
TUAN SING HOLDINGS 118,620,496 480,000 $172,237 2,795,000
KOUFU GROUP 55,516,300 249,300 $170,066 349,300
JUMBO GROUP 64,109,130 411,000 $154,196 503,300
GRP 19,370,161 763,000 $153,319 1,707,200
CDW HOLDING 22,724,200 641,800 $117,687 641,800
RAFFLES MEDICAL GROUP 179,835,340 100,000 $101,151 200,000
GOODLAND GROUP 36,059,491 330,000 $63,307 330,000
NORDIC GROUP 39,251,910 138,500 $39,865 615,600
THE STRAITS TRADING COMPANY 40,767,817 16,800 $36,588 92,400
JAPFA 186,466,879 57,200 $29,051 912,700
GLOBAL PALM RESOURCES HOLDINGS 19,600,350 90,200 $18,929 90,200
STRACO CORPORATION 86,411,428 17,000 $12,932 17,000
CHEUNG WOH TECHNOLOGIES 30,221,180 40,000 $5,045 318,900
Total 37,500,500 $55,135,597

* Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions. 
Source: SGX May Gateway (Data as of 30 June 2019)



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. As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.







This article is provided by SGX My Gateway.



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