SGX Market Updates

SGX Companies Share Buyback Consideration Doubled in February 2020


PUBLISHED ON |

02 March 2020

  • In Feb 2020, 17 SGX primary-listed stocks bought back shares for a total consideration of S$68 million. This was up from S$30 million in consideration for Jan 2020 and S$32 million in Feb 2019, and above the average monthly buyback consideration of S$49 million in 2019.

  • DBS, Keppel Corp and Silverlake Axis led the share buyback consideration tally, with the average buyback prices at S$24.623, S$6.720 and S$0.338 respectively. Buybacks for DBS made up S$43 million of the S$68 million total consideration.

  • Three stocks commenced new mandates in Feb - Singtel, The Hour Glass and Goodland Group. Singtel bought back S$1.6 million in shares at an average price of S$3.296, which compared to its preceding buyback of S$1.4 million in shares at an average price of S$3.117 on 16 May 2019. 




Total share buyback consideration for month of February 2020 totaled S$67.9 million, more than double the S$29.9 million in consideration reported for January 2020 (see market update: 16 Companies Stocks Bought Back S$30 Million in Shares in January) in addition to more than double the S$32 million in February 2019.

During the month of February 2020, the Straits Times Index (“STI”) declined 4.5%, as the concerns of the potential economic impact of COVID-19 in the US Economy and other more US-centric factors, saw the Dow Jones Industrial Average decline 14% from its 12 February all-time through to the end of February. Both the United States and China represent two-fifths of global GDP, hence volatility of most equity benchmarks across the world notched higher in February.



SGX Monthly Buybacks and STI Moves Feb 2020



A total of 17 primary-listed stocks conducted buybacks in Singapore in February, up from 16 in January. 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.



February 2020 Buybacks at S$68 Million

The table below summarises the buyback considerations in February 2020. 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. SingTel, The Hour Glass and Goodland Group commenced new mandates.

Stocks that Conducted
buybacks in
February 2020
Number of
Shares/units
Authorised for
Purchase in
Current Mandate
Total Number of
Shares/units
Purchased
Total Buyback
Consideration
(including stamp duties,
clearing changes etc.)
paid or payable
for the shares
Average Price
Paid Per
Share/Unit
Cumulative Number
of Shares/units
purchased in
Mandate to date*
DBS GROUP HOLDINGS 51,165,438 1,750,000 $43,089,446 $24.623 5,900,000
KEPPEL CORPORATION 36,340,188 740,100 $4,973,189 $6.720 1,510,100
SILVERLAKE AXIS 264,505,273 13,716,400 $4,632,822 $0.338 34,829,300
OVERSEA-CHINESE BANKING CORPORATION 212,257,935 300,000 $3,279,395 $10.931 11,380,000
STARHUB 173,022,009 1,900,000 $2,905,847 $1.529 1,936,553
MDR 6,496,063,939 1,653,488,200 $1,655,965 $0.001 1,665,517,500
SINGTEL 816,457,915 481,169 $1,586,062 $3.296 481,169
SINGAPORE EXCHANGE 107,164,240 175,100 $1,532,315 $8.751 385,500
SINGAPORE PRESS HOLDINGS 159,456,338 750,000 $1,493,119 $1.991 1,050,000
STAMFORD LAND CORPORATION 81,973,408 2,450,700 $1,221,132 $0.498 35,267,800
GLOBAL INVESTMENTS 168,741,864 4,721,700 $664,497 $0.141 76,079,200
SINGAPORE SHIPPING CORPORATION 42,417,689 1,648,500 $477,497 $0.290 17,494,200
TUAN SING HOLDINGS 118,620,496 649,000 $200,735 $0.309 4,454,000
ST GROUP FOOD INDUSTRIES HOLDINGS 24,600,000 410,800 $100,742 $0.245 1,445,800
BOUSTEAD SINGAPORE 48,968,653 56,500 $41,005 $0.726 3,623,900
THE HOUR GLASS 70,501,188 30,000 $23,260 $0.775 30,000
GOODLAND GROUP 36,020,991 100,000 $16,837 $0.168 100,000
Total   1,683,368,169 $67,893,867    

Source: Bloomberg, SGX (Data as of 28 February 2020)
* note as of the end of February.



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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