In 1H20, 81 Singapore primary-listed stocks conducted buybacks with a total consideration of S$663 million, up from S$325 million in 1H2019, and less than S$836 million in 1H2018. Three quarters of the 1H20 consideration was bought back in the month of March.
The S$663 million buyback consideration represented less than 0.1% of the total market value of all stocks listed in Singapore, which stood at S$817 billion on 30 June. One third of the current 30 STI stocks accounted for S$563 million (85%) of the S$663 million in 1H20 buyback consideration.
DBS, OCBC and UOB led the buyback consideration, after OCBC, DBS and Keppel REIT led the consideration tally for the full 2019 year. The three non-STI stocks that led the buyback consideration tally in 1H20 were Silverlake Axis, Global Investments and Golden Agri-Resources.
Total share buyback consideration for the first half of 2020 (1H20) amounted to S$663 million. There were 81 stocks that bought back their shares over the 6 months, with as many as 65 of the 81 stocks buying back their shares in the volatile month of March. The month of March also accounted for S$502 million or 76% of the total S$663 million in buyback consideration for 1H20 (see: Market Declines Saw 65 Stocks Conduct Share Buybacks in March 2020). The buyback consideration was also up from S$325 million in the first 6 months of 2019.
As illustrated in the chart above, the buyback consideration was less than what was observed in the first six months of 2018.
As illustrated in the chart below, 2018 saw a distinct pick up in buyback consideration for the months of February through to September. The chart also shows the decline in the STI to 2,589.91 at the end of 1H20, representing a 17.7% decline in total return, following its 9.4% gain in 2019.
Total share buyback consideration for month of June totaled S$12.6 million, similar to the S$14.9 million in consideration for May (see: ST Engineering Leads May 2020 Buyback Consideration Tally on New Mandate).
Global Investments, Hong Fok Corporation, Singapore O&G, Telechoice International and Avarga commenced new buyback mandates in June. The table below is sorted by the value of the total consideration amount for the month of June, which combines the amount of shares or units purchased and the purchasing price of the transactions.
| Primary-listed Stocks that conducted Share Buybacks in June 2020 |
Number of Shares/units Authorised for Purchase in Current Mandate |
Total Number of Shares/units Purchased in June 2020 |
Total Buyback Consideration (including stamp duties, clearing changes etc.) paid or payable for the shares in June 2020 |
Average Share Price Paid (including stamp duties, clearing changes etc.) in June 2020 |
|---|---|---|---|---|
| SINGAPORE EXCHANGE | 107,164,240 | 895,900 | $7,347,556 | $8.201 |
| GLOBAL INVESTMENTS | 161,476,125 | 14,085,300 | $1,966,817 | $0.140 |
| ST ENGINEERING | 62,429,441 | 500,000 | $1,715,149 | $3.430 |
| HONG FOK CORPORATION | 84,800,184 | 393,700 | $269,494 | $0.685 |
| GRP | 18,789,481 | 1,302,700 | $245,333 | $0.188 |
| SINGAPORE O&G | 47,680,300 | 1,018,266 | $229,760 | $0.226 |
| KSH HOLDINGS | 56,813,564 | 673,500 | $227,238 | $0.337 |
| TELECHOICE INTERNATIONAL | 45,253,352 | 980,000 | $192,164 | $0.196 |
| GKE CORPORATION | 78,853,189 | 2,298,500 | $151,339 | $0.066 |
| OKP HOLDINGS | 30,762,939 | 649,300 | $104,127 | $0.160 |
| TUAN SING HOLDINGS | 118,414,021 | 288,500 | $77,061 | $0.267 |
| MTQ CORPORATION | 21,631,848 | 142,700 | $31,482 | $0.221 |
| THE STRAITS TRADING COMPANY | 40,694,407 | 18,000 | $28,929 | $1.607 |
| SINGAPORE SHIPPING CORPORATION | 42,417,689 | 105,900 | $26,536 | $0.251 |
| AVARGA | 94,706,912 | 62,000 | $9,273 | $0.150 |
| Grand Total | 23,414,266 | $12,622,258 |
Source: SGX (Data as of 30 June 2020)
The 30 stocks that led the tally of the buyback consideration for 1H20 are tabled below. Combined, these 30 stocks made up 98% of the S$663 million in total buyback consideration. The S$663 million in consideration represents 0.08% of the S$817 billion total market capitalisation of all stocks listed on Singapore Exchange.
| 30 of the 81 Primary-listed Stocks that conducted Share Buybacks in 1H20 |
Total Number of Shares/Units Purchased in 1H20 |
Total Buyback Consideration (including stamp duties, clearing changes etc.) paid or payable for the shares in 1H20 |
Average Price Paid per Share/Unit (including stamp duties, clearing changes etc.) in 1H20 |
|---|---|---|---|
| DBS GROUP | 21,400,000 | $431,471,911 | $20.162 |
| OVERSEA-CHINESE BANKING CORPORATION | 6,895,800 | $62,889,547 | $9.120 |
| UNITED OVERSEAS BANK | 993,300 | $19,954,908 | $20.090 |
| SINGAPORE EXCHANGE | 2,002,000 | $17,003,996 | $8.494 |
| SILVERLAKE AXIS | 47,694,400 | $15,371,321 | $0.322 |
| ST ENGINEERING | 4,300,000 | $14,679,814 | $3.414 |
| GLOBAL INVESTMENTS | 80,053,100 | $10,584,519 | $0.132 |
| GOLDEN AGRI-RESOURCES | 42,683,100 | $8,063,785 | $0.189 |
| SINGAPORE PRESS HOLDINGS | 4,698,100 | $7,520,405 | $1.601 |
| HONG FOK CORPORATION | 11,460,700 | $7,111,861 | $0.621 |
| SEMBCORP INDUSTRIES | 2,868,000 | $6,604,138 | $2.303 |
| KEPPEL CORPORATION | 805,124 | $5,365,027 | $6.664 |
| STAMFORD LAND CORPORATION | 8,183,200 | $3,950,496 | $0.483 |
| OXLEY HOLDINGS | 18,129,300 | $3,695,933 | $0.204 |
| STARHUB | 2,100,000 | $3,192,214 | $1.520 |
| HRNETGROUP | 7,216,200 | $3,178,906 | $0.441 |
| SINGTEL | 945,055 | $2,765,215 | $2.926 |
| BOUSTEAD SINGAPORE | 4,057,300 | $2,608,707 | $0.643 |
| SINGAPORE SHIPPING CORPORATION | 9,068,800 | $2,433,491 | $0.268 |
| SINGAPORE REINSURANCE CORPORATION | 7,911,800 | $2,141,864 | $0.271 |
| KEPPEL INFRASTRUCTURE TRUST | 4,750,000 | $1,946,275 | $0.410 |
| FIRST RESOURCES | 1,388,500 | $1,934,153 | $1.393 |
| UMS HOLDINGS | 3,000,000 | $1,918,880 | $0.640 |
| AEM HOLDINGS | 1,100,000 | $1,804,092 | $1.640 |
| MDR | 1,653,488,200 | $1,655,965 | $0.001 |
| SATS | 535,000 | $1,569,768 | $2.934 |
| KEPPEL REIT | 1,813,500 | $1,550,370 | $0.855 |
| Q & M DENTAL GROUP (SINGAPORE) | 4,153,200 | $1,537,798 | $0.370 |
| KSH HOLDINGS | 4,309,400 | $1,294,306 | $0.300 |
| BUMITAMA AGRI | 3,353,000 | $1,263,754 | $0.377 |
Source: SGX (Data as of 30 June 2020)
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.
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.
