|04 December 2017|
|Nov Share Buybacks Total $39 million, up 74% from Oct|
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.
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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