SGX listcos share investors’ confidence with share buybacks as MAS market revival moves get underway

[SINGAPORE] Listcos are joining investors in giving their vote of confidence to Singapore companies, with some spending hundreds of millions to buy back their shares in recent weeks.

Such purchases have been conducted by banks and other blue chips on the Singapore Exchange (SGX) over September and October. They come as firms and the benchmark Straits Times Index continue to break new ground amid moves by the Monetary Authority of Singapore (MAS) to revive the local stock market. 

One such MAS measure is the S$5 billion Equity Market Development Programme which aims to stimulate investor interest in Singapore equities and widen participation beyond just large-cap counters.

Among the asset managers picked under the programme, Fullerton Fund Management has launched a retail fund to invest exclusively in Singapore-listed securities, spanning large mid, and small-cap stocks, initial public offerings (IPOs) and secondary listings.

Likewise, local fund manager Avanda Investment Management is rolling out the Avanda Singapore Discovery Fund which will focus on severely undervalued stocks, turnaround companies and ‘local champions’ with long-term promise.

On its part, the Singapore Exchange last month introduced new stock benchmarks – the iEdge Singapore Next 50 Index and the iEdge Singapore Next 50 Liquidity Weighted Index – to track the performance of the 50 largest and most liquid mainboard-listed companies outside the Straits Times Index.

BT highlights some of the recent buybacks by SGX listcos: 

OCBC : The lender repurchased around 7.3 million shares for S$117.3 million from Sep 1 to Oct 10 in batches of 250,000. This works out to an average of around S$16.07 per share. All repurchased shares were stored in treasury, bringing its number of treasury shares close to 25 million as at Oct 10. 

UOB : The bank bought back 3 million shares in tranches of 100,000 from Sep 1 to Oct 10. It spent around S$105.5 million in total on the purchase, which works out to around S$35.17 per share. All repurchased shares were cancelled. 

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Sats : The ground handler spent around S$15.2 million on 4.5 million shares from Sep 12 to Oct 10, or an average S$3.38 per share. The buys raised its treasury shares to almost 6 million as at Oct 10. 

Sembcorp : The renewables player bought 1.7 million shares, spending S$10.5 million from Sep 2 to Oct 8. The shares were repurchased in tranches of 170,000 at an average S$6.18 each. All were booked under its treasury shares, which totalled about 10.9 million shares as at Oct 8. 

Keppel : The asset manager paid around S$19.4 million for some 2.2 million shares between Sep 15 and Sep 30, or about S$8.82 apiece. The transactions boosted its stockpile of treasury shares to 16.6 million as at Sep 30. 

ST Engineering : The group purchased one million of its shares in two tranches of 500,000 on Sep 25 and Oct 10. It paid a total consideration of around S$8.5 million, or S$8.50 apiece, and stored all shares in treasury. Its total treasury shares stood at around 4.6 million as at Oct 10.  

Fraser & Neave : It bought close to 1.1 million shares from Sep 1 to Oct 9 for a total of about S$1.6 million or around S$1.45 per share. This brought its treasury shares to over 1.4 million as at Oct 9.  

OUE : The property developer paid S$2.3 million for 1.9 million shares from Sep 2 to Oct 10. It placed all repurchased shares in its treasury, which as at Oct 10 held 24.3 million shares. It spent an average of around S$1.21 per share. 

Zheneng Jinjiang Environment : The China waste treatment firm spent S$158,514 buying back 365,300 of its shares from Sep 23 to Sep 30. This works out to an average S$0.43 for each share. All repurchased shares were placed in treasury, which as at Sep 30 held more than 17.1 million shares. 

The Hour Glass : The luxury watch retailer spent around S$520,690 buying back 250,000 of its shares from Sep 1 to Oct 10, paying around S$2.08 per share. It placed all of the repurchased shares in treasury, which contained around 59.4 million shares as at Oct 10. 

First Resources : The Indonesian palm oil producer scooped up a total of 292,600 shares for S$482,705 on Sep 16, Sep 18 and Sep 26. This translates to around S$1.65 per share. It stored all repurchased shares in treasury, bringing its total treasury shares as at Sep 26 to more than 35 million. 

iFast : The wealth management fintech platform paid S$506,117 for 58,700 shares on Sep 11, storing all of them in treasury. This translated to an average price of S$8.62 per share. As at Sep 11, its treasury shares stood at 254,340. 

AEM : The semiconductor test-equipment maker bought back 200,000 shares on Sep 10, placing them all in treasury. This cost S$304,153, or an average price of S$1.52 per share. It held over 1.6 million treasury shares as at Sep 10. 

HRnetGroup : The mainboard-listed firm on Sep 4 purchased 18,400 for S$12,745, or an average S$0.69 apiece. It added them to its treasury pool, which had more than 32.3 million shares as at Sep 4.