SGX Market Updates

SGX Primary-Listed Stocks Bought Back S$590 Million in Shares in 2019


PUBLISHED ON |

03 January 2020

  • In the month of Dec 2019, 20 SGX primary-listed stocks bought back 43 million shares for a total consideration of S$70 million. This was up from S$52 million in consideration for Nov 2019, and similar to the S$78 million filed for Dec 2018.

  • This brought the total buyback consideration for 2019 to S$590 million, with close to 80 primary-listed stocks conducting the buybacks, down from 2018’s comparatively larger SS$1.53 billion in consideration with 100 stocks then conducting buybacks.

  • The 2019 buyback consideration tally was led by OCBC, DBS, Keppel REIT, ST Engineering and Yangzijiang. Buybacks conducted by STI stocks made up two-thirds of the S$590 million total consideration in 2019.




Total share buyback consideration for month of Dec 2019 totaled S$70.1 million, up from the $52.0 million in consideration reported for Nov 2019 (see market update: SGX Stocks Nov Buyback Consideration Reaches S$52M in November for more details). The December 2019 buyback consideration was similar to the S$78.0 million reported for December 2018.

During the month of December 2019, the Straits Times Index (“STI”) gained 0.9%. This took the 2019 total return of the Straits Times Index (“STI”) to 9.4%, as highlighted in a recent Market Update (click STI Clocks 9.4% Total Return in 2019 for more).



SGX Monthly Share Buybacks



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 can 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.

2019 Buyback Consideration Tally at S$590 Million

December buybacks took the total buyback consideration for SGX primary-listed stocks in 2019 to SS$590 million, with close to 80 stocks conducting the buybacks. This meant the 2019 total buyback consideration was close to two-fifths the total buyback consideration in 2018, that totaled S$1.53 billion. As shown in the chart below, the total consideration for 2019 was more similar to the consideration totals in 2016 and 2017.



SGX Share Buybacks Y-o-y



The 2019 buyback consideration tally was led by Oversea-Chinese Banking Corporation, DBS Group Holdings, Keppel REIT, ST Engineering and Yangzijiang Shipbuilding (Holdings). Buybacks conducted by STI stocks made up two-thirds of the S$590 million total consideration in 2019. By comparison, STI stocks contributed four-fifths of the S$1.53 billion in total buyback consideration for primary-listed stocks in 2018.

The non-STI stocks that are currently actively trading and contributed the highest buyback considerations for 2019 included Keppel REIT, Stamford Land Corporation, Global Investments, Hong Fok Corporation and Olam International.



Dec 2019 Buybacks at S$70 Million

The table below summarises the buyback considerations in December 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.

Stocks Max Number
Shares/units
Authorised for
Purchase in
Current Mandate
Dec 2019
Total Number
of Shares/units
Purchased
Dec 2019
Total Buyback
Consideration
 (including stamp duties,
clearing changes etc.)
paid or payable
for the shares
Cumulative of
Number of
Shares/units purchased
in Mandate to date
OVERSEA-CHINESE BANKING CORPORATION 212,257,935 2,400,000 $26,013,511 10,330,000
DBS GROUP HOLDINGS 51,165,438 500,000 $12,460,969 4,150,000
KEPPEL REIT MANAGEMENT 170,210,715 10,015,572 $12,449,425 61,304,972
SINGAPORE TECHNOLOGIES ENGINEERING 62,432,801 2,828,400 $11,331,502 6,499,100
SEMBCORP INDUSTRIES 35,739,673 865,000 $1,880,766 1,730,100
STAMFORD LAND CORPORATION 81,973,408 2,300,800 $1,152,136 28,588,500
SILVERLAKE AXIS 264,505,273 2,635,000 $1,100,746 8,001,400
STRACO CORPORATION 86,411,428 1,313,400 $888,656 1,434,700
HOTEL PROPERTIES 26,914,011 220,300 $841,003 220,300
GLOBAL INVESTMENTS 168,741,864 3,856,100 $550,622 65,034,800
CHINA SUNSINE CHEMICAL HOLDINGS . 98,262,340 806,700 $408,055 6,980,700
SINGAPORE SHIPPING CORPORATION 42,417,689 867,000 $251,942 15,223,700
AEI CORPORATION 5,673,215 197,600 $190,585 3,009,200
SPACKMAN ENTERTAINMENT GROUP 103,096,560 12,000,000 $170,528 12,000,000
CHEUNG WOH TECHNOLOGIES 30,189,290 822,500 $124,624 4,188,400
ANCHUN INTERNATIONAL HOLDINGS . 5,008,260 376,900 $102,909 1,391,700
INTRACO 10,372,588 238,500 $70,397 620,800
KIMLY 115,489,763 280,000 $67,589 5,994,700
FOOD EMPIRE HOLDINGS 53,426,699 24,500 $14,994 424,500
CDW HOLDING 22,724,200 56,000 $10,054 4,052,900
Total   42,604,272 $70,081,012  

Source: SGX (Data as of 31 December 2019)



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.







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