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.

Equity Bottom-Up

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In Feb, 21 primary-listed stocks on SGX bought back their shares with a combined S$114.0 million in consideration, up from the S$52.9 million filed for January. Seasonally, the consideration also doubled the S$49.7 million in consideration filed for February 2021. 
	 </li>
	<li>
The Feb buyback consideration tally was led by Keppel Corp, with the conglomerate buying back S$88 million of its shares during the month at an average price of S$5.99 per share. The stock gained 6% in Feb, and as of 28 Feb, Keppel Corp had bought back 0.86% of its respective issued shares (excl. treasury shares) on the current buyback mandate. 
	 </li>
	<li>Raffles Medical bought back 4 million shares in Feb, at an average price of S$1.19 per share between 23 Feb and 28 Feb after reporting FY21 (ended 31 Dec) revenue increased 27.4% YoY on 21 Feb. As of 28 Feb, Raffles Medical had bought back 0.39% of its respective issued shares (excl. treasury shares) on the current buyback mandate.</li>
</ul>
 

In February, 21 primary-listed stocks on SGX bought back their shares that totaled S$114.0 million in consideration, up from the S$52.9 million in consideration filed for January (click <a href="https://www.sgx.com/research-education/market-updates/20220204-yangzijiang-ocbc-and-nanofilm-tech-led-buyback">here</a> for more). On a seasonal basis, the consideration also doubled the S$49.7 million in consideration filed for February 2021 (click <a href="https://www.sgx.com/research-education/market-updates/20210301-wilmar-keppel-corp-st-eng-led-buyback-consideration">here</a> for more).  The S$114.0 million in buyback consideration represented 0.02% of the total market value of all primary-listed stocks listed on SGX as of the end of the end of February. Of the S$899.1 billion in total market capitalisation for all stocks listed on SGX at the end of February, S$662.8 billion was represented by primary-listed stocks. Secondary-listings Jardine Matheson Holdings and Hongkong Land also continued to conduct share buybacks in February. During the month of February, the Straits Times Index (“STI”) declined 0.2% to 3,242.24 as the FTSE Asia Pacific Index declined 0.6% in SGD terms. Singapore stocks were recipient to S$480 million of net institutional inflow in February, following on from more than S$800 million in net institutional inflows in January. The combined AUM of the SPDR® Straits Times Index ETF and the Nikko AM Singapore STI ETF ended February 2022 at S$2.21 billion, compared to S$2.23 billion at the end of December 2021, with the unit creations and redemptions generating S$70 million of net outflows from the two ETFs year to date. This compared to S$63 million of inflows during first 2 months of 2021.
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The February buyback consideration tally was led by Keppel Corporation, Singapore Telecommunications, Oversea-Chinese Banking Corporation, Raffles Medical Group and Singapore Exchange. As of 28 Feb, Keppel Corporation had bought back 0.86% of its respective issued shares (excl. treasury shares) on the current buyback mandate. On 27 January, Keppel Corporation announced it had established a S$500 million Share Buyback Programme, pursuant to the Share Purchase Mandate granted by its shareholders at the Company’s previous AGM. The Company noted that shares repurchased will be held as treasury shares which will be used in part for the annual vesting of employee share plans, but also as possible currency for future M&amp;A activities. The company reports its FY21 net profit surged to a 6-year high back on 27 Jan, and the stock also gained 6.0% in February, ranking as the sixth strongest STI stock for the month. Keppel Corporation bought back S$88 million of its shares in February at an average price of S$5.99 per share. 
The table below summarises the buyback transactions of the 21 primary-listed stocks that conducted buybacks in February. 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. 

<table class="table table-striped"><tbody>
<tr>
<td>
			Primary-listed Stocks that Conducted Buybacks in Feb 2022
			</td>
			<td>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Total Number of Shares/Units Purchased in Feb 2022
			</td>
			<td>
			Total Buyback Consideration (including stamp duties, clearing changes etc.) paid or payable for the shares
			</td>
			<td>
			Avg. Price Paid
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date
			</td>
			<td>
			Pct of Outstanding Shares (Excl. Treas) purchased in Mandate to date
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORPORATION
			</td>
			<td>
			36,400,461
			</td>
			<td>
			14,622,500
			</td>
			<td>
			$87,544,991
			</td>
			<td>
			$5.987
			</td>
			<td>
			15,570,100
			</td>
			<td>
			0.86
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TELECOMMUNICATIONS
			</td>
			<td>
			825,681,724
			</td>
			<td>
			1,889,496
			</td>
			<td>
			$4,845,412
			</td>
			<td>
			$2.564
			</td>
			<td>
			5,745,033
			</td>
			<td>
			0.03
			</td>
		</tr>
<tr>
<td>
			OVERSEA-CHINESE BANKING CORPORATION
			</td>
			<td>
			223,511,333
			</td>
			<td>
			400,000
			</td>
			<td>
			$4,820,503
			</td>
			<td>
			$12.051
			</td>
			<td>
			28,880,100
			</td>
			<td>
			0.65
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			186,740,892
			</td>
			<td>
			4,000,000
			</td>
			<td>
			$4,749,104
			</td>
			<td>
			$1.187
			</td>
			<td>
			7,279,400
			</td>
			<td>
			0.39
			</td>
		</tr>
<tr>
<td>
			SINGAPORE EXCHANGE
			</td>
			<td>
			107,164,240
			</td>
			<td>
			456,900
			</td>
			<td>
			$4,314,959
			</td>
			<td>
			$9.444
			</td>
			<td>
			2,602,300
			</td>
			<td>
			0.24
			</td>
		</tr>
<tr>
<td>
			STARHUB
			</td>
			<td>
			173,110,176
			</td>
			<td>
			2,200,000
			</td>
			<td>
			$2,811,355
			</td>
			<td>
			$1.278
			</td>
			<td>
			3,453,000
			</td>
			<td>
			0.19
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,409,095
			</td>
			<td>
			500,000
			</td>
			<td>
			$1,892,427
			</td>
			<td>
			$3.785
			</td>
			<td>
			8,800,000
			</td>
			<td>
			0.28
			</td>
		</tr>
<tr>
<td>
			THE HOUR GLASS
			</td>
			<td>
			69,664,318
			</td>
			<td>
			602,300
			</td>
			<td>
			$1,201,004
			</td>
			<td>
			$1.994
			</td>
			<td>
			12,686,900
			</td>
			<td>
			1.82
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			267,590,370
			</td>
			<td>
			1,432,400
			</td>
			<td>
			$422,902
			</td>
			<td>
			$0.295
			</td>
			<td>
			1,432,400
			</td>
			<td>
			0.05
			</td>
		</tr>
<tr>
<td>
			WING TAI HOLDINGS
			</td>
			<td>
			77,054,716
			</td>
			<td>
			191,500
			</td>
			<td>
			$343,283
			</td>
			<td>
			$1.793
			</td>
			<td>
			6,891,600
			</td>
			<td>
			0.89
			</td>
		</tr>
<tr>
<td>
			BROADWAY INDUSTRIAL GROUP
			</td>
			<td>
			46,822,156
			</td>
			<td>
			1,500,000
			</td>
			<td>
			$300,895
			</td>
			<td>
			$0.201
			</td>
			<td>
			11,526,800
			</td>
			<td>
			2.46
			</td>
		</tr>
<tr>
<td>
			VALUETRONICS HOLDINGS
			</td>
			<td>
			43,562,583
			</td>
			<td>
			438,700
			</td>
			<td>
			$233,069
			</td>
			<td>
			$0.531
			</td>
			<td>
			438,700
			</td>
			<td>
			0.10
			</td>
		</tr>
<tr>
<td>
			BOUSTEAD SINGAPORE
			</td>
			<td>
			48,403,012
			</td>
			<td>
			174,100
			</td>
			<td>
			$168,517
			</td>
			<td>
			$0.968
			</td>
			<td>
			1,678,200
			</td>
			<td>
			0.35
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			39,889,089
			</td>
			<td>
			295,800
			</td>
			<td>
			$83,163
			</td>
			<td>
			$0.281
			</td>
			<td>
			5,802,600
			</td>
			<td>
			1.45
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			159,744,243
			</td>
			<td>
			500,000
			</td>
			<td>
			$76,007
			</td>
			<td>
			$0.152
			</td>
			<td>
			62,625,500
			</td>
			<td>
			3.92
			</td>
		</tr>
<tr>
<td>
			PAN-UNITED CORPORATION
			</td>
			<td>
			69,857,582
			</td>
			<td>
			165,000
			</td>
			<td>
			$57,770
			</td>
			<td>
			$0.350
			</td>
			<td>
			2,881,000
			</td>
			<td>
			0.41
			</td>
		</tr>
<tr>
<td>
			BAN LEONG TECHNOLOGIES
			</td>
			<td>
			11,386,050
			</td>
			<td>
			102,000
			</td>
			<td>
			$38,490
			</td>
			<td>
			$0.377
			</td>
			<td>
			241,500
			</td>
			<td>
			0.21
			</td>
		</tr>
<tr>
<td>
			CSC HOLDINGS
			</td>
			<td>
			356,782,817
			</td>
			<td>
			2,000,000
			</td>
			<td>
			$28,087
			</td>
			<td>
			$0.014
			</td>
			<td>
			38,400,000
			</td>
			<td>
			1.08
			</td>
		</tr>
<tr>
<td>
			KIM HENG
			</td>
			<td>
			70,790,730
			</td>
			<td>
			200,000
			</td>
			<td>
			$15,742
			</td>
			<td>
			$0.079
			</td>
			<td>
			1,265,200
			</td>
			<td>
			0.18
			</td>
		</tr>
<tr>
<td>
			ST GROUP FOOD INDUSTRIES HOLDINGS
			</td>
			<td>
			24,286,210
			</td>
			<td>
			120,000
			</td>
			<td>
			$13,887
			</td>
			<td>
			$0.116
			</td>
			<td>
			240,000
			</td>
			<td>
			0.10
			</td>
		</tr>
<tr>
<td>
			XMH HOLDINGS
			</td>
			<td>
			10,928,222
			</td>
			<td>
			99,500
			</td>
			<td>
			$10,993
			</td>
			<td>
			$0.110
			</td>
			<td>
			99,500
			</td>
			<td>
			0.09
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			31,890,196
			</td>
			<td>
			$113,972,559
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 28 Feb 2022)

 

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 can be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. Buybacks have also been observed to broadly pick up amidst market declines that are driven by international macroeconomic developments. 
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="https://www.sgx.com/securities/company-announcements?ANNC=ANNC13">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before semi-annual financial statements and one month immediately before the full-year financial statements.
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In Feb, 21 primary-listed stocks on SGX bought back their shares with a combined S$114.0 million in consideration, up from the S$52.9 million filed for January. Seasonally, the consideration also doubled the S$49.7 million in consideration filed for February 2021.  
	 
	
The Feb buyback consideration tally was led by Keppel Corp, with the conglomerate buying back S$88 million of its shares during the month at an average price of S$5.99 per share. The stock gained 6% in Feb, and as of 28 Feb, Keppel Corp had bought back 0.86% of its respective issued shares (excl. treasury shares) on the current buyback mandate.  
	 
	Raffles Medical bought back 4 million shares in Feb, at an average price of S$1.19 per share between 23 Feb and 28 Feb after reporting FY21 (ended 31 Dec) revenue increased 27.4% YoY on 21 Feb. As of 28 Feb, Raffles Medical had bought back 0.39% of its respective issued shares (excl. treasury shares) on the current buyback mandate.

 

In February, 21 primary-listed stocks on SGX bought back their shares that totaled S$114.0 million in consideration, up from the S$52.9 million in consideration filed for January (click here for more). On a seasonal basis, the consideration also doubled the S$49.7 million in consideration filed for February 2021 (click here for more).  The S$114.0 million in buyback consideration represented 0.02% of the total market value of all primary-listed stocks listed on SGX as of the end of the end of February. Of the S$899.1 billion in total market capitalisation for all stocks listed on SGX at the end of February, S$662.8 billion was represented by primary-listed stocks. Secondary-listings Jardine Matheson Holdings and Hongkong Land also continued to conduct share buybacks in February.  During the month of February, the Straits Times Index (“STI”) declined 0.2% to 3,242.24 as the FTSE Asia Pacific Index declined 0.6% in SGD terms. Singapore stocks were recipient to S$480 million of net institutional inflow in February, following on from more than S$800 million in net institutional inflows in January. The combined AUM of the SPDR® Straits Times Index ETF and the Nikko AM Singapore STI ETF ended February 2022 at S$2.21 billion, compared to S$2.23 billion at the end of December 2021, with the unit creations and redemptions generating S$70 million of net outflows from the two ETFs year to date. This compared to S$63 million of inflows during first 2 months of 2021.



      
    
    Buybacks


The February buyback consideration tally was led by Keppel Corporation, Singapore Telecommunications, Oversea-Chinese Banking Corporation, Raffles Medical Group and Singapore Exchange. As of 28 Feb, Keppel Corporation had bought back 0.86% of its respective issued shares (excl. treasury shares) on the current buyback mandate. On 27 January, Keppel Corporation announced it had established a S$500 million Share Buyback Programme, pursuant to the Share Purchase Mandate granted by its shareholders at the Company’s previous AGM. The Company noted that shares repurchased will be held as treasury shares which will be used in part for the annual vesting of employee share plans, but also as possible currency for future M&amp;A activities. The company reports its FY21 net profit surged to a 6-year high back on 27 Jan, and the stock also gained 6.0% in February, ranking as the sixth strongest STI stock for the month. Keppel Corporation bought back S$88 million of its shares in February at an average price of S$5.99 per share.  
The table below summarises the buyback transactions of the 21 primary-listed stocks that conducted buybacks in February. 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. 




			Primary-listed Stocks that Conducted Buybacks in Feb 2022
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Total Number of Shares/Units Purchased in Feb 2022
			
			
			Total Buyback Consideration (including stamp duties, clearing changes etc.) paid or payable for the shares
			
			
			Avg. Price Paid
			
			
			Cumulative Number of Shares/units purchased in Mandate to date
			
			
			Pct of Outstanding Shares (Excl. Treas) purchased in Mandate to date
			
		


			KEPPEL CORPORATION
			
			
			36,400,461
			
			
			14,622,500
			
			
			$87,544,991
			
			
			$5.987
			
			
			15,570,100
			
			
			0.86
			
		


			SINGAPORE TELECOMMUNICATIONS
			
			
			825,681,724
			
			
			1,889,496
			
			
			$4,845,412
			
			
			$2.564
			
			
			5,745,033
			
			
			0.03
			
		


			OVERSEA-CHINESE BANKING CORPORATION
			
			
			223,511,333
			
			
			400,000
			
			
			$4,820,503
			
			
			$12.051
			
			
			28,880,100
			
			
			0.65
			
		


			RAFFLES MEDICAL GROUP
			
			
			186,740,892
			
			
			4,000,000
			
			
			$4,749,104
			
			
			$1.187
			
			
			7,279,400
			
			
			0.39
			
		


			SINGAPORE EXCHANGE
			
			
			107,164,240
			
			
			456,900
			
			
			$4,314,959
			
			
			$9.444
			
			
			2,602,300
			
			
			0.24
			
		


			STARHUB
			
			
			173,110,176
			
			
			2,200,000
			
			
			$2,811,355
			
			
			$1.278
			
			
			3,453,000
			
			
			0.19
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,409,095
			
			
			500,000
			
			
			$1,892,427
			
			
			$3.785
			
			
			8,800,000
			
			
			0.28
			
		


			THE HOUR GLASS
			
			
			69,664,318
			
			
			602,300
			
			
			$1,201,004
			
			
			$1.994
			
			
			12,686,900
			
			
			1.82
			
		


			SILVERLAKE AXIS
			
			
			267,590,370
			
			
			1,432,400
			
			
			$422,902
			
			
			$0.295
			
			
			1,432,400
			
			
			0.05
			
		


			WING TAI HOLDINGS
			
			
			77,054,716
			
			
			191,500
			
			
			$343,283
			
			
			$1.793
			
			
			6,891,600
			
			
			0.89
			
		


			BROADWAY INDUSTRIAL GROUP
			
			
			46,822,156
			
			
			1,500,000
			
			
			$300,895
			
			
			$0.201
			
			
			11,526,800
			
			
			2.46
			
		


			VALUETRONICS HOLDINGS
			
			
			43,562,583
			
			
			438,700
			
			
			$233,069
			
			
			$0.531
			
			
			438,700
			
			
			0.10
			
		


			BOUSTEAD SINGAPORE
			
			
			48,403,012
			
			
			174,100
			
			
			$168,517
			
			
			$0.968
			
			
			1,678,200
			
			
			0.35
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			39,889,089
			
			
			295,800
			
			
			$83,163
			
			
			$0.281
			
			
			5,802,600
			
			
			1.45
			
		


			GLOBAL INVESTMENTS
			
			
			159,744,243
			
			
			500,000
			
			
			$76,007
			
			
			$0.152
			
			
			62,625,500
			
			
			3.92
			
		


			PAN-UNITED CORPORATION
			
			
			69,857,582
			
			
			165,000
			
			
			$57,770
			
			
			$0.350
			
			
			2,881,000
			
			
			0.41
			
		


			BAN LEONG TECHNOLOGIES
			
			
			11,386,050
			
			
			102,000
			
			
			$38,490
			
			
			$0.377
			
			
			241,500
			
			
			0.21
			
		


			CSC HOLDINGS
			
			
			356,782,817
			
			
			2,000,000
			
			
			$28,087
			
			
			$0.014
			
			
			38,400,000
			
			
			1.08
			
		


			KIM HENG
			
			
			70,790,730
			
			
			200,000
			
			
			$15,742
			
			
			$0.079
			
			
			1,265,200
			
			
			0.18
			
		


			ST GROUP FOOD INDUSTRIES HOLDINGS
			
			
			24,286,210
			
			
			120,000
			
			
			$13,887
			
			
			$0.116
			
			
			240,000
			
			
			0.10
			
		


			XMH HOLDINGS
			
			
			10,928,222
			
			
			99,500
			
			
			$10,993
			
			
			$0.110
			
			
			99,500
			
			
			0.09
			
		


			Total
			
			
			 
			
			
			31,890,196
			
			
			$113,972,559
			
			
			 
			
			
			 
			
			
			 
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 28 Feb 2022)

 

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 can be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. Buybacks have also been observed to broadly pick up amidst market declines that are driven by international macroeconomic developments.  
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 semi-annual financial statements and one month immediately before the full-year financial statements.



Keppel Corp Leads Feb Buybacks with S$88 million in Consideration  

Singapore

XMH Holdings Ltd. distributes marine and industrial diesel engines, generators and related components. The Company markets its products to ship owners,       s hipyards, dealers, hotel proprietors and mine owners.

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XMH Holdings (XMH SP)

Keppel Corp Leads Feb Buybacks with S$88 million in Consideration

In Feb, 21 primary-listed stocks on SGX bought back their shares with a combined S$114.0 million in consideration, up from the S$52.9 million...

Singapore Exchange Ltd (SGX)

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