06 September 2017
Almost 30 Stocks Buyback Shares in August, Buyback Value at 11M High
  • More than 32 million shares with a total consideration of S$59.7 million were repurchased by 29 companies in August. This was more than double the S$26.7 million in total consideration for the month of July.
  • The five stocks with the largest buyback consideration value last month were OCBC, M1, ST Engineering, S i2i and Singapore Post. For a sixth consecutive month, OCBC maintained the highest buyback consideration.
  • S I2I’s current buyback mandate began on 1 August. For the month of August the company purchased 5.2% of its outstanding shares, with further transactions on 4 Sep and 5 Sep taking this amount to up 6.2%.

In the month of August 2017, there were a total of 32,195,591 shares repurchased by 29 stocks, with a total consideration of S$59.7 million. Buyback consideration was up 123.5% from the S$26.7 million reported for July 2017.

 

Buybacks in August 2017 have taken the total share buyback consideration for the 2017 year to date to S$287 million. This compares with S$679 million for the first eight months of 2016. August’s share buyback consideration was down 6.7% YOY from S$63.9 million in August 2016. Over the past 12 months, the Straits Times Index (STI) rallied 16.2%, with re-invested dividends boosting the total return of 20.1%.

 

As illustrated below, monthly total buyback consideration in August 2017 more than doubled the buyback value in July. This coincided with the majority of stocks completing their blackout periods for buying stocks ahead of quarterly earnings reports in August. There was also a decline in the STI during the month of 1.6%,  which was the first monthly decline for 2017.

 

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

Source: SGX (data as of 31 August 2017)

 

The five stocks with the largest buyback consideration value last month were Oversea-Chinese Banking Corp (OCBC), M1, ST Engineering, S i2i and Singapore Post. For a sixth consecutive month, OCBC had the highest buyback consideration in the month, taking the total number of shares purchased on the 12-month mandate effective 28 April to 11.36 million.

S I2I’s current buyback mandate began on 1 August. For the month of August it had purchased 5.2% of its outstanding shares, with transactions on 4 September and 5 September, taking this share to up 6.2%.  The total number of shares that may be purchased or acquired by the S I2I is limited to no more than 10% of the total number of issued Shares of the Company ascertained as of 1 August - the date of the EGM at which the adoption of the Share Buyback Mandate was approved. SI2I’s 2Q17 results can be found here and its latest quarterly update pursuant to being placed on the SGX Securities Trading Watchlist can be found here.  The share price of the telecommunication service company rallied 79.9% over the first eight months of 2017.

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.


B
uybacks in August

The table below summarises the buyback considerations in August 2017. The table is sorted by the value of the total consideration amount, which is the product of the number of shares purchased and the purchase price of the shares.

 

Name

Start Date

Mandate

Total No. of shares bought in August

Total Consideration: August S$

Cum No. of Shares Purchased to End of August

Pct* %

Oversea-Chinese Banking Corp

28/04/2017

209,124,917

3,160,000

35,254,353

11,360,000

0.27

M1

12/04/2017

93,006,278

5,000,000

8,949,602

5,000,000

0.54

ST Engineering

21/04/2017

62,326,704

1,362,800

4,904,738

1,362,800

0.04

S i2i

01/08/2017

1,371,245

711,191

2,159,291

711,191

5.19

Singapore Post

20/07/2017

227,146,452

1,116,600

1,413,384

1,116,600

0.05

Bumitama Agri

21/04/2017

175,181,214

1,700,000

1,225,777

6,514,200

0.37

Sysma Holdings

18/11/2016

26,100,000

8,651,400

1,120,185

8,651,400

3.31

Duty Free Intl

29/06/2017

122,850,039

3,170,000

966,648

7,520,000

0.61

Straco Corp

28/04/2017

86,035,798

900,000

775,988

900,000

0.11

Japfa

12/04/2017

176,952,559

1,420,700

713,218

10,245,800

0.58

Best World Intl

26/04/2017

27,522,975

371,000

431,056

2,337,250

0.85

SIA Engineering Co

20/07/2017

22,393,422

92,000

324,204

92,000

0.01

Bonvests Holdings

25/04/2017

40,206,916

224,600

292,912

224,600

0.06

Boustead Singapore

27/07/2017

52,229,843

198,100

178,713

198,100

0.04

AEM Holdings

27/04/2017

6,501,336

60,000

161,423

70,000

0.11

Spackman Entertainment Group

27/04/2017

46,303,170

1,299,100

138,384

1,299,100

0.28

Sarine Technologies

25/04/2017

35,083,784

80,000

117,306

50,000

0.01

CNMC Goldmine Holdings

28/04/2017

40,729,300

379,900

102,884

379,900

0.09

IPS Securex Holdings

28/10/2016

48,600,000

1,155,900

89,630

1,155,900

0.24

BBR Holdings

21/04/2017

30,799,941

389,400

88,281

676,400

0.22

Tiong Seng Holdings

26/04/2017

45,962,384

232,000

69,132

2,581,600

0.57

Zhongmin Baihui Retail Group

26/04/2017

19,216,020

54,500

56,570

200,200

0.10

Boustead Projects

27/07/2017

31,968,220

60,000

51,781

60,000

0.02

Global Palm Resources Holdings

25/04/2017

19,911,640

127,500

48,127

1,081,500

0.54

MTQ Corp

28/07/2017

15,451,494

100,000

37,095

100,000

0.06

Global Testing Corp

28/04/2017

3,535,802

20,000

21,668

20,000

0.06

Star Pharmaceutical

27/04/2017

4,661,049

92,400

19,617

92,400

0.20

Koh Brothers Group

20/04/2017

41,351,400

60,000

17,742

170,000

0.04

PACC Offshore Services Holdings

27/04/2017

181,382,010

6,500

1,848

129,700

0.01

Total 

 

 

32,195,591

59,731,553

 

 

Source: SGX (data as of 31 August 2017) *percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution

 

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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