SGX Market Updates

August 2019 Share Buyback Value at S$70 Million, as STI Returned to May Levels


PUBLISHED ON |

03 September 2019

  • In the month of August the STI declined 5.9%, with dividends marginally improving the total return to a decline of 5.0%. This brought the STI’s total return for the first eight months of 2019 to 4.8%, while the FTSE ST Mid Cap Index doubled the STI’s gains with a 9.8% total return.

  • For the month of August, 23 stocks primary-listed on SGX repurchased more than 70 million shares with a total consideration of S$70 million. This was up from S$42 million in July 2019 and down from S$245 million in August 2018.

  • Buyback consideration was led by Yangzijiang Shipbuilding, DBS, ST Engineering, Stamford Land and Keppel REIT. Both Yangzijiang Shipbuilding and Stamford Land commenced new buyback mandates, with another five stocks also commencing new mandates.




Total share buyback consideration for the month of August 2019 totaled S$70.1 million, up from S$S$41.6 million in July and greater than the average total monthly consideration of S$57 million over the preceding six months. There were 23 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 71.5 million shares or units.

However, the S$70.1 million in buyback consideration was less than the S$245 million in buyback consideration filed in August 2018, when the STI also declined on trade tensions, with DBS Group Holdings contributing three-fifths of the total consideration in August 2018.

Last month, the Straits Times Index (“STI”) declined 5.9%, with a heavy month for dividend distributions marginally improving the month’s total return to a decline of 5.0%. This was in-line with the region with the Hang Seng Index declining 5.9% in total return and the FTSE ASEAN All-share Index declining 2.4% in total return.



SGX Monthly Share Buyback Consideration



August declines brought the STI’s total return for the first months of 2019 to 4.8%. As highlighted in last night’s SGX My Gateway Report (click here), both the FTSE ST Mid Cap Index and the FTSE ST Small Cap Index outpaced the STI over the first eight months of 2019 with respective total returns of 9.8% and 7.9%.

Seven Stocks Commenced New Mandates Commenced in August 2019

The table below summarises the buyback considerations in August 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 seven 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 Aug 2019
Total Buyback
Consideration
in Aug 2019
(including stamp duties,
clearing changes etc.)
paid or payable
for the shares S$
Cumulative Number of
Shares/units purchased
in Mandate to date*
YANGZIJIANG SHIPBUILDING (HOLDINGS) 394,576,520 20,000,000 $18,469,174 20,000,000
DBS GROUP HOLDINGS 51,165,438 550,000 $13,264,943 3,650,000
SINGAPORE TECHNOLOGIES ENGINEERING 62,432,801 2,170,700 $8,791,595 3,270,700
STAMFORD LAND CORPORATION 81,973,408 15,710,800 $7,618,097 15,710,800
KEPPEL REIT MANAGEMENT 170,210,715 5,796,200 $7,059,740 23,387,600
KEPPEL CORPORATION 36,340,188 770,000 $4,542,518 770,000
SIIC ENVIRONMENT HOLDINGS 260,658,872 2,688,000 $2,275,970 3,771,000
HONG FOK CORPORATION 86,147,124 2,293,200 $1,939,575 2,293,200
BOUSTEAD SINGAPORE 48,968,653 1,880,300 $1,372,393 3,567,400
SINGAPORE SHIPPING CORPORATION 42,417,689 4,232,300 $1,226,972 4,555,800
SINGAPORE PRESS HOLDINGS 159,698,243 576,300 $1,150,699 2,576,300
GLOBAL INVESTMENTS 168,741,864 5,130,400 $704,140 37,798,200
REX INTERNATIONAL HOLDING 129,122,045 5,727,300 $411,224 5,727,300
AEM HOLDINGS 27,096,300 300,000 $324,832 1,400,000
RAFFLES MEDICAL GROUP 179,835,340 200,000 $197,295 400,000
TUAN SING HOLDINGS 118,620,496 555,000 $188,629 3,530,000
CHEUNG WOH TECHNOLOGIES 30,189,290 1,026,600 $143,580 1,036,600
HRNETGROUP 100,581,957 222,000 $126,381 222,000
MAXI-CASH FINANCIAL SERVICES CORPORATION 103,515,605 911,000 $116,437 911,000
CDW HOLDING 22,724,200 512,100 $94,119 2,737,000
JAPFA 186,466,879 150,000 $73,919 1,162,700
GRP 19,370,161 130,000 $25,105 1,837,200
TREK 2000 INTERNATIONAL 32,002,002 11,400 $1,013 566,600
Total   71,543,600 $70,118,348  

* Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.
Source: SGX My Gateway (Data as of 31 August 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. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management.

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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