In February, 17 SGX primary-listed stocks bought back 23 million shares for a total consideration of S$49.7 million. This was up from S$12.4 million in consideration for January 2021, and less than the S$67.9 million filed for February 2020.
The February buyback consideration tally was led by Wilmar International, Keppel Corporation, Singapore Technologies Engineering, which accounted for 85% of the S$49.7 million consideration. Wilmar International bought back approximately 5.5 million shares over the month, at an average price of S$5.31 per share.
Total share buyback consideration for month of February 2021 totaled S$49.7 million, up from the $12.4 million in consideration reported for January 2021 (click here for more details). The February 2021 buyback consideration was lower on a seasonal basis, with S$67.9 million in consideration reported for February 2020 (click here for more details).
During the month of February 2021, the Straits Times Index (“STI”) gained 1.6%, moving to 2,949.04 from 2,902.52 at the end of January. Dividends took the STI’s total return to 1.7% in February, and as discussed here, this has brought the 2021 year-to-date total return to 3.9%.
The combined AUM of the SPDR® Straits Times Index ETF and the Nikko AM Singapore STI ETF ended February at S$2.19 billion compared to S$2.16 billion at the end of January 2021 and compared to S$1.12 billion at the end of February 2020, with the unit creations and redemptions generating S$16 million of net inflows into the two ETFs, generating S$980 million of net inflows into the two ETFs over the last 12 months.
There were 17 SGX primary-listed stocks that bought back shares in February. Like in Janaury, the two of the 17 stocks that have bought back the largest percentage of their issued shares on the current mandates are Global Investments and OUE. Global Investments’ current buyback mandate has seen it purchase 3.90% of its issued shares (excluding treasury shares), with the preceding share buyback mandate seeing Global Investments buy back 8.52% of its issued shares (excluding treasury shares). Meanwhile, as of 26 February, OUE had bought back of 2.19% its issued shares (excluding treasury shares) on the current mandate.
The table below summarises the buyback considerations in February 2021. 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.
| SGX Primary Listed Stocks that Conducted Buybacks in Feb 2021 |
Number of Shares/units Authorised for Purchase in Current Mandate |
Total Number of Shares/units Purchased in Feb 2021 |
Total Buyback Consideration (including stamp duties, clearing changes etc.) paid or payable for the shares |
Average Price Paid |
Cumulative Number of Shares/units purchased in Mandate to date |
Percent of Outstanding Shares (Excl. Treasury) purchased in Mandate to date |
|---|---|---|---|---|---|---|
| WILMAR INTERNATIONAL | 635,459,880 | 5,463,000 | $29,021,163 | $5.312 | 50,431,400 | 0.79 |
| KEPPEL CORPORATION | 36,410,340 | 2,100,000 | $10,703,266 | $5.097 | 5,161,504 | 0.28 |
| SINGAPORE TECHNOLOGIES ENGINEERING | 62,429,441 | 655,000 | $2,486,090 | $3.796 | 7,405,000 | 0.24 |
| SINGAPORE TELECOMMUNICATIONS | 816,457,915 | 672,151 | $1,627,824 | $2.422 | 672,151 | 0.00 |
| STARHUB | 173,132,642 | 1,000,000 | $1,261,618 | $1.262 | 2,492,200 | 0.14 |
| BOUSTEAD SINGAPORE | 48,714,422 | 1,368,800 | $1,220,613 | $0.892 | 3,114,100 | 0.64 |
| SINGAPORE EXCHANGE | 107,164,240 | 117,400 | $1,163,779 | $9.913 | 117,400 | 0.01 |
| OUE | 90,061,166 | 759,100 | $866,788 | $1.142 | 19,708,900 | 2.19 |
| SECOND CHANCE PROPERTIES | 37,763,566 | 2,266,100 | $586,108 | $0.259 | 3,364,700 | 0.45 |
| GLOBAL INVESTMENTS | 161,476,125 | 1,700,000 | $241,760 | $0.142 | 62,978,600 | 3.90 |
| ECOWISE HOLDINGS | 95,648,612 | 4,470,600 | $148,402 | $0.033 | 6,140,400 | 0.64 |
| FOOD EMPIRE HOLDINGS | 53,597,249 | 150,000 | $137,653 | $0.918 | 3,483,600 | 0.65 |
| HC SURGICAL SPECIALISTS | 15,104,573 | 303,200 | $129,427 | $0.427 | 1,833,800 | 1.21 |
| NORDIC GROUP | 39,019,100 | 268,000 | $65,342 | $0.244 | 1,734,000 | 0.44 |
| MIYOSHI | 59,996,089 | 1,200,000 | $43,208 | $0.036 | 2,350,000 | 0.39 |
| STAMFORD LAND CORPORATION | 78,296,238 | 127,700 | $42,835 | $0.335 | 127,700 | 0.02 |
| CHEUNG WOH TECHNOLOGIES | 29,770,450 | 9,100 | $1,379 | $0.152 | 2,740,300 | 0.92 |
| 22,630,151 | $49,747,255 |
Source: SGX (Data as of 26 February 2021)
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 semi-annual financial statements and one month immediately before the full-year financial statements.
