SGX Market Updates

More than 80 Singapore Stocks Conducted Buybacks in 1H20


PUBLISHED ON |

01 July 2020

  • 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.


SGX Share BuyBack by Quarter


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. 


SGX Monthly Share Buyback Consideration


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.







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