SGX Market Updates

Market Declines Saw 65 Stocks Conduct Share Buybacks in March 2020


PUBLISHED ON |

01 April 2020

  • In March, 65 SGX primary-listed stocks bought back shares for a total consideration of S$502 million. This was the highest monthly consideration since S$544 million in consideration was reported for the month of August 2015.

  • The $502 million in buyback consideration was equivalent to 0.07% of Singapore’s total market capitalisation at the end of March. DBS, OCBC and UOB led the consideration tally, accounting for 88% of the total consideration.

  • As many as 34 stocks commenced buyback mandates in March, with UOB, Golden-Agri, Oxley Holdings, First Resources, UMS Holdings, Singapore Reinsurance Corporation, Bumitama Agri and Q & M Dental Group buying back more than S$1 million in consideration.




Total share buyback consideration for month of March surged to S$502 million, which represents a 55 month high since S$544 million was reported for buyback consideration in August 2015. This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$600 million in 1Q20, eclipsing the more than S$590 million in consideration for the entire calendar year of 2019 (see 16 Companies Stocks Bought Back S$30 Million in Shares in January 2020 for more details).



SGX Monthly Share Buybacks



The Straits Times Index (STI) declined 17.6% in the month to 2,481.23. The STI 30 day volatility also climbed to 51.7% on 31 March, the highest level it has seen since December 2008. This brought the STI’s price decline to 23.0% for 1Q20, with the FTSE ASEAN All-Share Index declining 27.2%.



March 2020 Buybacks at S$502 Million

A total of 65 primary-listed stocks conducted buybacks in Singapore in March, up significantly from 16 stocks in January and 17 stocks in February. 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. Buybacks can pick up amidst market declines that are driven by broader moves on international macroeconomic developments.

The table below summarises the buyback considerations in March 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. Companies that commenced buyback mandates are in bold.

Primary-listed Stocks that conducted Share buybacks in March 2020 Number of
Shares/units
Authorised for
Purchase in
Current Mandate
Total Number
of Shares/units
Purchased in
March 2020
Total Buyback
Consideration (including
stamp duties, clearing
changes etc.) paid
or payable for
the shares in
March 2020
Average
Share Price Paid
(including stamp
duties, clearing
changes etc.)
Cumulative Number
of Shares/units
purchased in
Mandate to 31 March
DBS GROUP HOLDINGS 51,165,438 19,650,000 $388,382,465 $19.765 25,550,000
OVERSEA-CHINESE BANKING CORPORATION 212,257,935 3,915,800 $34,662,535 $8.852 15,295,800
UNITED OVERSEAS BANK 83,287,115 993,300 $19,954,908 $20.090 993,300
GOLDEN AGRI-RESOURCES 1,273,475,615 42,683,100 $8,063,785 $0.189 42,683,100
SINGAPORE EXCHANGE 107,164,240 570,400 $4,814,365 $8.440 955,900
OXLEY HOLDINGS 207,787,184 18,129,300 $3,695,933 $0.204 18,129,300
SILVERLAKE AXIS 264,505,273 13,460,000 $3,677,553 $0.273 48,289,300
SINGAPORE TECHNOLOGIES ENGINEERING 62,432,801 1,000,000 $3,451,977 $3.452 8,299,100
HONG FOK CORPORATION 86,147,124 5,866,500 $3,231,873 $0.551 8,221,800
GLOBAL INVESTMENTS 168,741,864 21,809,600 $2,685,781 $0.123 97,888,800
BOUSTEAD SINGAPORE 48,968,653 3,970,800 $2,550,266 $0.642 7,594,700
HRNETGROUP 100,581,957 4,366,800 $1,949,144 $0.446 4,938,800
FIRST RESOURCES 158,407,296 1,388,500 $1,934,153 $1.393 1,388,500
UMS HOLDINGS 53,642,957 3,000,000 $1,918,880 $0.640 3,000,000
AEM HOLDINGS 27,096,300 1,100,000 $1,804,092 $1.640 2,600,000
SINGAPORE SHIPPING CORPORATION 42,417,689 6,692,400 $1,748,701 $0.261 24,186,600
KEPPEL REIT MANAGEMENT 170,210,715 1,813,500 $1,550,370 $0.855 63,118,472
SINGAPORE REINSURANCE CORPORATION 60,521,978 5,455,700 $1,476,351 $0.271 5,455,700
BUMITAMA AGRI 173,749,704 2,853,000 $1,069,209 $0.375 2,853,000
Q & M DENTAL GROUP (SINGAPORE) 78,562,192 2,778,200 $1,030,136 $0.371 2,778,200
KSH HOLDINGS 56,813,564 3,273,400 $959,719 $0.293 3,273,400
GRP 18,789,481 5,067,500 $822,639 $0.162 5,067,500
CHINA SUNSINE CHEMICAL HOLDINGS 98,262,340 2,768,800 $813,890 $0.294 9,749,500
HOTEL PROPERTIES 26,914,011 259,100 $768,412 $2.966 515,300
STAMFORD LAND CORPORATION 81,973,408 1,483,900 $609,392 $0.411 36,751,700
KEPPEL INFRASTRUCTURE TRUST 249,707,588 1,450,000 $595,263 $0.411 1,450,000
THE HOUR GLASS 70,501,188 1,000,000 $567,025 $0.567 1,030,000
OUE 90,151,586 444,200 $561,023 $1.263 444,200
NAM LEE PRESSED METAL INDUSTRIES 24,374,408 1,687,700 $531,544 $0.315 1,687,700
SINGHAIYI GROUP 421,905,217 6,716,700 $476,466 $0.071 7,026,700
PACIFIC CENTURY REGIONAL DEVELOPMENTS 264,974,030 1,590,100 $460,044 $0.289 1,590,100
ST GROUP FOOD INDUSTRIES HOLDINGS 24,600,000 1,805,700 $428,754 $0.237 3,251,500
COMFORTDELGRO CORPORATION 216,638,866 255,000 $399,587 $1.567 255,000
THE STRAITS TRADING COMPANY 40,767,817 165,900 $307,302 $1.852 737,600
FOOD EMPIRE HOLDINGS 53,426,699 600,000 $306,950 $0.512 1,024,500
GSH CORPORATION 195,893,335 1,216,600 $294,140 $0.242 1,216,600
NORDIC GROUP 39,251,910 1,290,600 $291,042 $0.226 1,906,200
IFAST CORPORATION 26,812,292 350,000 $279,150 $0.798 350,000
TIONG SENG HOLDINGS 45,962,384 2,233,100 $268,766 $0.120 2,233,100
LUM CHANG HOLDINGS 38,048,630 905,900 $267,733 $0.296 905,900
JAPFA 186,466,879 587,400 $266,048 $0.453 1,917,900
TUAN SING HOLDINGS 118,620,496 990,200 $236,995 $0.239 5,444,200
TELECHOICE INTERNATIONAL 45,438,718 850,000 $164,880 $0.194 4,450,000
GKE CORPORATION 78,853,189 3,112,300 $162,566 $0.052 3,112,300
JUMBO GROUP 64,068,820 735,800 $158,629 $0.216 735,800
STARBURST HOLDINGS 12,114,546 386,200 $137,797 $0.357 767,800
CDW HOLDING 22,724,200 550,000 $93,612 $0.170 5,255,500
AMPLEFIELD 90,061,753 2,500,000 $88,359 $0.035 2,500,000
SINGAPORE MEDICAL GROUP 48,072,163 445,000 $84,486 $0.190 584,000
KIMLY 114,890,293 460,000 $82,890 $0.180 460,000
ISOTEAM 28,506,812 500,000 $82,859 $0.166 500,000
SINARMAS LAND 425,586,249 403,100 $61,628 $0.153 403,100
OKP HOLDINGS 30,843,059 379,900 $57,601 $0.152 379,900
KOUFU GROUP 55,516,300 97,300 $54,570 $0.561 446,600
KODA 8,251,362 70,000 $31,908 $0.456 70,000
JAPAN FOODS HOLDING 17,360,290 85,700 $24,997 $0.292 85,700
PEC 25,496,522 48,300 $19,403 $0.402 48,300
GOODLAND GROUP 36,020,991 90,000 $14,845 $0.165 190,000
EUROSPORTS GLOBAL 26,220,160 80,000 $10,863 $0.136 689,000
KIM HENG OFFSHORE & MARINE HOLDINGS 70,883,230 475,000 $10,729 $0.023 625,000
SARINE TECHNOLOGIES 35,059,572 50,000 $9,399 $0.188 50,000
SHS HOLDINGS 68,512,981 50,000 $8,147 $0.163 50,000
MTQ CORPORATION 21,631,848 37,300 $7,074 $0.190 37,300
EXCELPOINT TECHNOLOGY 11,919,284 14,400 $4,911 $0.341 14,400
Total   209,059,000 $501,536,511    

Source: Bloomberg, SGX (Data as of 31 March 2020).



According to information in the company filings, new mandates were commenced for United Overseas Bank, Golden Agri-Resources, Oxley Holdings, First Resources, UMS Holdings, Singapore Reinsurance Corporation, Bumitama Agri, Q & M Dental Group (Singapore), KSH Holdings, GRP, Keppel Infrastructure Trust, OUE, Nam Lee Pressed Metal Industries, Pacific Century Regional Developments, ComfortDelGro Corporation, GSH Corporation, iFAST Corporation, Tiong Seng Holdings, Lum Chang Holdings, GKE Corporation, Jumbo Group, Amplefield, Kimly, ISOteam, Sinarmas Land, OKP Holdings, Koda, Japan Foods Holding, PEC, Sarine Technologies, SHS Holdings , MTQ Corporation and Excelpoint Technology.

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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