04 December 2017
Nov Share Buybacks Total $39 million, up 74% from Oct
  • In the month of November 2017, there were 27.7 million shares repurchased by 22 companies, with a total consideration of S$39.4 million. Buyback consideration was up 74% from the S$22.6 million reported for October 2017 and down 1.5% from November 2016.
  • The five stocks with the largest buyback consideration value last month were OCBC, Silverlake Axis, Sembcorp Marine, Singapore Post and ST Engineering, which made up more than 90% of the S$39.4 million in total consideration.
  • Stocks that commenced buyback mandates in November included G. K. Goh Hldgs, HC Surgical Specialists, Japan Foods Hldgs, Kim Heng Offshore & Marine Hldgs, Mun Siong Engineering and USP Group. All six stocks conducted multiple buyback transactions in November.

In the month of November 2017, there were a total of 27,744,489 shares repurchased by 22 companies, with a total consideration of S$39.4 million. Buyback consideration was up 74% from the S$22.6 million reported for October 2017 and down 1.5% from November 2016.

 

Buybacks in November 2017 have taken the total share buyback consideration for the first 11 months of 2017 to S$383 million. This compares with S$818 million for the first 11 months of 2016. Over the past 12 months, the Straits Times Index (STI) rallied 18.2%, with re-invested dividends boosting its total return to 22.2%. 

 

As illustrated below, monthly total buyback consideration in November 2017 was the fourth highest this year, and nearly double that of the previous month. For information on October 2017 buybacks click here and for information on November 2016 buybacks click here.  

 

Monthly Share Buyback Consideration (S$ Million) & STI Month-End Levels

Source: SGX (data as of 30 November 2017)

 

As discussed here the Straits Times Index (STI) added 1.8% for the month of November bringing its dividend inclusive return for the first 11 months of 2017 to 23%, compared to SGD denominated average returns of 18% for the benchmarks of Australia, Hong Kong and Japan.

 

For an ninth consecutive month, Oversea-Chinese Banking Corp (“OCBC”) maintained the highest buyback consideration in the month, taking the total number of shares to date purchased on the 12-month mandate (effective 28 April) to 15.36 million. Stocks that reported the next highest consideration in November were Silverlake Axis, Sembcorp Marine, Singapore Post and ST Engineering.

 

Stocks that commenced buyback mandates in November included G. K. Goh Hldgs, HC Surgical Specialists, Japan Foods Hldgs, Kim Heng Offshore & Marine Hldgs, Mun Siong Engineering and USP Group. All six stocks conducted multiple buyback transactions in November. Of the six stocks, HC Surgical Specialists led the buyback tally, purchasing 459,900 shares for a combined consideration of S$320,884.

 

The table below summarises the buyback considerations in November 2017. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares purchased and the purchasing price of the shares.

 

Name

Start Date

Mandate

Total No. of shares bought in November

Total Consideration: November S$

Cum No. of Shares Purchased to End of November

Pct* %

Oversea-Chinese Banking Corp

28/04/2017

209,124,917

1,800,000

21,527,139

15,360,000

0.37

Silverlake Axis

26/10/2017

264,661,760

18,000,000

10,662,240

131,905,200

4.98

Sembcorp Marine

18/04/2017

208,969,459

1,300,000

2,441,686

1,700,100

0.08

Singapore Post

20/07/2017

227,146,452

1,116,600

1,443,265

4,466,400

0.20

ST Engineering

21/04/2017

62,326,704

300,000

991,271

4,500,000

0.14

Hotung Investment Hldgs

13/04/2017

9,720,378

201,700

412,608

718,300

0.74

AEM Hldgs

27/04/2017

6,501,336

115,200

374,965

185,200

0.28

HC Surgical Specialists

26/09/2017

14,963,563

459,900

320,884

459,900

0.31

S i2i

01/08/2017

1,371,245

94,589

280,171

1,178,530

8.60

Starburst Hldgs

27/04/2017

12,445,470

549,800

221,904

4,799,200

1.93

Tiong Seng Hldgs

26/04/2017

45,962,384

547,900

211,020

5,324,800

1.17

G. K. Goh Hldgs

24/04/2017

32,668,653

113,600

120,786

113,600

0.03

Broadway Industrial Group

30/04/2017

47,088,446

744,500

92,540

944,500

0.20

Kim Heng Offshore & Marine Hldgs

26/04/2017

71,000,000

949,200

92,292

949,200

0.13

Mun Siong Engineering

20/04/2017

57,143,710

1,138,000

83,112

1,138,000

0.20

Japan Foods Hldg

24/07/2017

17,356,350

107,300

46,252

107,300

0.06

Sarine Technologies

25/04/2017

35,083,784

40,000

38,419

706,900

0.20

BBR Hldgs

21/04/2017

30,799,941

84,000

21,616

1,550,400

0.50

Anchun International Hldgs

28/04/2017

5,050,000

50,000

13,799

59,700

0.12

SIA Engineering Company

20/07/2017

22,393,422

2,400

7,617

1,312,200

0.12

Global Testing Corp

28/04/2017

3,535,802

5,200

5,624

154,400

0.44

USP Group

19/10/2017

9,092,200

24,600

3,639

24,600

0.03

Total

 

 

27,744,489

39,412,848

 

 

Source: SGX (data as of 30 November 2017) *percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution

 

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 will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

 

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 (click here).


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