SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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<ul>
<li>
In June 2019, 25 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$55 million. This was down from S$123 million in May 2019 and down from S$174 million in June 2018. 
	 </li>
	<li>
After 13 stocks commenced new buyback mandates in May, seven stocks commenced new buybacks in the month of June 2019:  Boustead Singapore, Telechoice International, KSH Holdings, CDW Holding, Goodland Group, Global Palm Resources Holdings and Straco Corporation. 
	 </li>
	<li>Buyback consideration was led by OCBC &amp; DBS. The current mandate has seen DBS buy back 0.121% of its shares &amp; OCBC buy back 0.118% as of 30 June. The previous year mandate saw DBS buy back 0.478% and OCBC buy back 0.378% of its shares.</li>
</ul>
Total share buyback consideration for the month of June 2019 totaled S$55.1 million. There were 25 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 37.5 million shares or units.

The S$55.1 million in buyback consideration was less than the buyback consideration of S$123.1 million filed in May 2019 (click <a href="https://www2.sgx.com/research-education/market-updates/20190603-may-share-buyback-consideration-s123m-9-month-high">here</a> for more) and more similar to the average total monthly consideration of S$58 million over the preceding six months.

Last month, the Straits Times Index (“STI”) recovered 6.5%, retracing much of the ground lost in May which saw a 7.0% decline in total return. As discussed <a href="http://edm.sgx.com/a/hBdGeCvB86%24MfB9y77MAAApi2Gw/link1?t_params=DR0Q7IvW39xpsce5NsVVGSWaA5UEBTEA796wfcx9xSUWx0hJ5bhLD8FYfi-2oS4bJOnNRK8WgqJrNDmTPmJOykBpKcP">here</a> June’s gains took the STI total return for the first six months of 2019 to 10.5%. This was in-line with the region with the FTSE All-Share ASEAN Index which gained 10.2% and the FTSE Asia Pacific Index which gained 9.6%.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-07/Monthly%20Share%20Buyback%20Consideration%20%26%20STI%20Month-End%20Levels.JPG" alt="Monthly Share Buyback Consideration &amp; STI Month-End Levels">
 </figure>
 <div class="content-caption">Monthly Share Buyback Consideration &amp; STI Month-End Levels</div>
Seven Stocks Commenced New Mandates Commenced in June 2019 

The table below summarises the buyback considerations in June 2019. 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. The seven stocks that commenced new mandates are highlighted in Bold.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks
			</td>
			<td>
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			June 2019 Total Number of Shares/units Purchased
			</td>
			<td>
			June 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date*
			</td>
		</tr>
<tr>
<td>
			OVERSEA-CHINESE BANKING CORPORATION
			</td>
			<td>
			212,257,935
			</td>
			<td>
			2,250,000
			</td>
			<td>
			$24,753,300
			</td>
			<td>
			5,030,000
			</td>
		</tr>
<tr>
<td>
			DBS GROUP HOLDINGS
			</td>
			<td>
			51,165,438
			</td>
			<td>
			500,000
			</td>
			<td>
			$12,056,286
			</td>
			<td>
			3,100,000
			</td>
		</tr>
<tr>
<td>
			OLAM INTERNATIONAL
			</td>
			<td>
			159,528,593
			</td>
			<td>
			2,437,300
			</td>
			<td>
			$4,673,113
			</td>
			<td>
			2,547,900
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT MANAGEMENT
			</td>
			<td>
			170,210,715
			</td>
			<td>
			3,350,000
			</td>
			<td>
			$4,165,898
			</td>
			<td>
			9,740,700
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			86,408,798
			</td>
			<td>
			5,368,200
			</td>
			<td>
			$2,561,500
			</td>
			<td>
			43,346,700
			</td>
		</tr>
<tr>
<td>
			BOUSTEAD SINGAPORE 
			</td>
			<td>
			49,298,483
			</td>
			<td>
			3,298,300
			</td>
			<td>
			$2,544,854
			</td>
			<td>
			3,298,300
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			12,331,600
			</td>
			<td>
			$1,643,505
			</td>
			<td>
			24,610,300
			</td>
		</tr>
<tr>
<td>
			TELECHOICE INTERNATIONAL 
			</td>
			<td>
			45,438,718
			</td>
			<td>
			2,600,000
			</td>
			<td>
			$573,952
			</td>
			<td>
			2,600,000
			</td>
		</tr>
<tr>
<td>
			KSH HOLDINGS 
			</td>
			<td>
			56,973,564
			</td>
			<td>
			1,100,000
			</td>
			<td>
			$468,220
			</td>
			<td>
			1,100,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE EXCHANGE
			</td>
			<td>
			107,164,240
			</td>
			<td>
			31,900
			</td>
			<td>
			$235,291
			</td>
			<td>
			910,748
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			43,701,979
			</td>
			<td>
			698,400
			</td>
			<td>
			$200,179
			</td>
			<td>
			12,520,200
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			27,096,300
			</td>
			<td>
			200,000
			</td>
			<td>
			$185,124
			</td>
			<td>
			1,100,000
			</td>
		</tr>
<tr>
<td>
			TUAN SING HOLDINGS
			</td>
			<td>
			118,620,496
			</td>
			<td>
			480,000
			</td>
			<td>
			$172,237
			</td>
			<td>
			2,795,000
			</td>
		</tr>
<tr>
<td>
			KOUFU GROUP
			</td>
			<td>
			55,516,300
			</td>
			<td>
			249,300
			</td>
			<td>
			$170,066
			</td>
			<td>
			349,300
			</td>
		</tr>
<tr>
<td>
			JUMBO GROUP
			</td>
			<td>
			64,109,130
			</td>
			<td>
			411,000
			</td>
			<td>
			$154,196
			</td>
			<td>
			503,300
			</td>
		</tr>
<tr>
<td>
			GRP
			</td>
			<td>
			19,370,161
			</td>
			<td>
			763,000
			</td>
			<td>
			$153,319
			</td>
			<td>
			1,707,200
			</td>
		</tr>
<tr>
<td>
			CDW HOLDING 
			</td>
			<td>
			22,724,200
			</td>
			<td>
			641,800
			</td>
			<td>
			$117,687
			</td>
			<td>
			641,800
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			179,835,340
			</td>
			<td>
			100,000
			</td>
			<td>
			$101,151
			</td>
			<td>
			200,000
			</td>
		</tr>
<tr>
<td>
			GOODLAND GROUP 
			</td>
			<td>
			36,059,491
			</td>
			<td>
			330,000
			</td>
			<td>
			$63,307
			</td>
			<td>
			330,000
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,251,910
			</td>
			<td>
			138,500
			</td>
			<td>
			$39,865
			</td>
			<td>
			615,600
			</td>
		</tr>
<tr>
<td>
			THE STRAITS TRADING COMPANY
			</td>
			<td>
			40,767,817
			</td>
			<td>
			16,800
			</td>
			<td>
			$36,588
			</td>
			<td>
			92,400
			</td>
		</tr>
<tr>
<td>
			JAPFA
			</td>
			<td>
			186,466,879
			</td>
			<td>
			57,200
			</td>
			<td>
			$29,051
			</td>
			<td>
			912,700
			</td>
		</tr>
<tr>
<td>
			GLOBAL PALM RESOURCES HOLDINGS 
			</td>
			<td>
			19,600,350
			</td>
			<td>
			90,200
			</td>
			<td>
			$18,929
			</td>
			<td>
			90,200
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION 
			</td>
			<td>
			86,411,428
			</td>
			<td>
			17,000
			</td>
			<td>
			$12,932
			</td>
			<td>
			17,000
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			30,221,180
			</td>
			<td>
			40,000
			</td>
			<td>
			$5,045
			</td>
			<td>
			318,900
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			                  37,500,500 
			</td>
			<td>
			$55,135,597
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.   
Source: SGX May Gateway (Data as of 30 June 2019)

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 <a href="http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.
</body></html>





In June 2019, 25 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$55 million. This was down from S$123 million in May 2019 and down from S$174 million in June 2018. 
	 
	
After 13 stocks commenced new buyback mandates in May, seven stocks commenced new buybacks in the month of June 2019:  Boustead Singapore, Telechoice International, KSH Holdings, CDW Holding, Goodland Group, Global Palm Resources Holdings and Straco Corporation.  
	 
	Buyback consideration was led by OCBC &amp; DBS. The current mandate has seen DBS buy back 0.121% of its shares &amp; OCBC buy back 0.118% as of 30 June. The previous year mandate saw DBS buy back 0.478% and OCBC buy back 0.378% of its shares.

Total share buyback consideration for the month of June 2019 totaled S$55.1 million. There were 25 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 37.5 million shares or units.

The S$55.1 million in buyback consideration was less than the buyback consideration of S$123.1 million filed in May 2019 (click here for more) and more similar to the average total monthly consideration of S$58 million over the preceding six months.

Last month, the Straits Times Index (“STI”) recovered 6.5%, retracing much of the ground lost in May which saw a 7.0% decline in total return. As discussed here June’s gains took the STI total return for the first six months of 2019 to 10.5%. This was in-line with the region with the FTSE All-Share ASEAN Index which gained 10.2% and the FTSE Asia Pacific Index which gained 9.6%.

      
    
    Monthly Share Buyback Consideration &amp; STI Month-End Levels
Seven Stocks Commenced New Mandates Commenced in June 2019 

The table below summarises the buyback considerations in June 2019. 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. The seven stocks that commenced new mandates are highlighted in Bold.




			Stocks
			
			
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			June 2019 Total Number of Shares/units Purchased
			
			
			June 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			
			
			Cumulative Number of Shares/units purchased in Mandate to date*
			
		


			OVERSEA-CHINESE BANKING CORPORATION
			
			
			212,257,935
			
			
			2,250,000
			
			
			$24,753,300
			
			
			5,030,000
			
		


			DBS GROUP HOLDINGS
			
			
			51,165,438
			
			
			500,000
			
			
			$12,056,286
			
			
			3,100,000
			
		


			OLAM INTERNATIONAL
			
			
			159,528,593
			
			
			2,437,300
			
			
			$4,673,113
			
			
			2,547,900
			
		


			KEPPEL REIT MANAGEMENT
			
			
			170,210,715
			
			
			3,350,000
			
			
			$4,165,898
			
			
			9,740,700
			
		


			STAMFORD LAND CORPORATION
			
			
			86,408,798
			
			
			5,368,200
			
			
			$2,561,500
			
			
			43,346,700
			
		


			BOUSTEAD SINGAPORE 
			
			
			49,298,483
			
			
			3,298,300
			
			
			$2,544,854
			
			
			3,298,300
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			12,331,600
			
			
			$1,643,505
			
			
			24,610,300
			
		


			TELECHOICE INTERNATIONAL 
			
			
			45,438,718
			
			
			2,600,000
			
			
			$573,952
			
			
			2,600,000
			
		


			KSH HOLDINGS 
			
			
			56,973,564
			
			
			1,100,000
			
			
			$468,220
			
			
			1,100,000
			
		


			SINGAPORE EXCHANGE
			
			
			107,164,240
			
			
			31,900
			
			
			$235,291
			
			
			910,748
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			43,701,979
			
			
			698,400
			
			
			$200,179
			
			
			12,520,200
			
		


			AEM HOLDINGS
			
			
			27,096,300
			
			
			200,000
			
			
			$185,124
			
			
			1,100,000
			
		


			TUAN SING HOLDINGS
			
			
			118,620,496
			
			
			480,000
			
			
			$172,237
			
			
			2,795,000
			
		


			KOUFU GROUP
			
			
			55,516,300
			
			
			249,300
			
			
			$170,066
			
			
			349,300
			
		


			JUMBO GROUP
			
			
			64,109,130
			
			
			411,000
			
			
			$154,196
			
			
			503,300
			
		


			GRP
			
			
			19,370,161
			
			
			763,000
			
			
			$153,319
			
			
			1,707,200
			
		


			CDW HOLDING 
			
			
			22,724,200
			
			
			641,800
			
			
			$117,687
			
			
			641,800
			
		


			RAFFLES MEDICAL GROUP
			
			
			179,835,340
			
			
			100,000
			
			
			$101,151
			
			
			200,000
			
		


			GOODLAND GROUP 
			
			
			36,059,491
			
			
			330,000
			
			
			$63,307
			
			
			330,000
			
		


			NORDIC GROUP
			
			
			39,251,910
			
			
			138,500
			
			
			$39,865
			
			
			615,600
			
		


			THE STRAITS TRADING COMPANY
			
			
			40,767,817
			
			
			16,800
			
			
			$36,588
			
			
			92,400
			
		


			JAPFA
			
			
			186,466,879
			
			
			57,200
			
			
			$29,051
			
			
			912,700
			
		


			GLOBAL PALM RESOURCES HOLDINGS 
			
			
			19,600,350
			
			
			90,200
			
			
			$18,929
			
			
			90,200
			
		


			STRACO CORPORATION 
			
			
			86,411,428
			
			
			17,000
			
			
			$12,932
			
			
			17,000
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			30,221,180
			
			
			40,000
			
			
			$5,045
			
			
			318,900
			
		


			Total
			
			
			 
			
			
			                  37,500,500 
			
			
			$55,135,597
			
			
			 
			
		

*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.   
Source: SGX May Gateway (Data as of 30 June 2019)

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). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.



25 Companies Conducted Share Buybacks in June   

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