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 September, 24 SGX primary-listed stocks bought back shares for a total consideration of S$43 million, higher than the S$15 million in consideration for August 2020, and seasonally higher than the S$15 million buyback consideration also reported in September 2019. 
	 </li>
	<li>
STI constituents Yangzijiang Shipbuilding (Holdings), Keppel Corporation and Singapore Technologies Engineering led the buyback consideration in September. As many as nine companies commenced new mandates, which included Ho Bee Land and Boustead Singapore. 
	 </li>
	<li>While the STI declined 2.6% in September, together the SPDR® STI ETF and Nikko AM STI ETF added net creations of S$103 million in September as investors continued to accumulate units. The S$807 million in  combined net creations for the two ETFS in the first nine months of 2020 is up 359% from the entire 2019 year.</li>
</ul>
 

Total share buyback consideration for the month of September totaled S$43.1 million, up from $15.1 million in August (click <a href="https://www.sgx.com/research-education/market-updates/20200901-11-companies-commence-new-share-buyback-mandates-august">here</a> for more) and up from up from S$2.9 million in July (click <a href="https://www.sgx.com/research-education/market-updates/20200804-buyback-consideration-modern-low-earnings-take-centre">here</a> for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$724 million for the first nine months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$724 million represents 0.09% of the combined S$797.8 billion in market capitalisation of all stocks listed on Singapore Exchange at the end of September. 
The S$43.1 million in September buyback consideration coincided with a 2.6% price decline in the Straits Times Index (“STI”) to 2,466.62. 
The STI’s 2.6% decline in  September saw its 10-day historical volatility end at 11.5%, similar to the August month-end level of 11.8%. However, during the month the STI 10-day historical volatility reached a low of 4.5%, levels not seen since January 2020.  For context, on 15 June, the STI 10-day historical volatility reached as high as 34%, and as high as 80% on 25 March and 31 March.
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Together, the SPDR® STI ETF and Nikko AM STI ETF garnered net creations of S$807 million over the first nine months of 2020 as investors accumulated units amidst the market declines. The S$807 million is up 359% from the total net creations of S$176 million for the entire 2019 year. As many as nine of the 24 companies commenced new buyback mandates in September – Ho Bee Land, Boustead Singapore, Starburst Holdings, Food Empire Holdings, Tiong Seng Holdings, Nordic Group, ecoWise Holdings, Eurosports Global and Kim Heng Offshore &amp; Marine Holdings. This followed on from 11 companies - Keppel Corporation, AEM Holdings, First Resources, Straco Corporation, Avarga, China Sunsine Chemical Holdings, YHI International, HRnetGroup, MDR, Ban Leong Technologies and Intraco, commencing new buyback mandates in August. The table below summarises the buyback considerations in September 2020. 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>
			Stocks
			</td>
			<td>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in Sep 2020
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Sep 2020
			</td>
			<td>
			Average Price Paid S$
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			</td>
			<td>
			391,876,520
			</td>
			<td>
			17,277,700
			</td>
			<td>
			$16,426,385
			</td>
			<td>
			$0.95
			</td>
			<td>
			30,004,500
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORPORATION
			</td>
			<td>
			36,410,340
			</td>
			<td>
			1,940,904
			</td>
			<td>
			$8,476,410
			</td>
			<td>
			$4.37
			</td>
			<td>
			3,061,504
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,429,441
			</td>
			<td>
			1,250,000
			</td>
			<td>
			$4,266,822
			</td>
			<td>
			$3.41
			</td>
			<td>
			6,250,000
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			264,505,273
			</td>
			<td>
			11,450,100
			</td>
			<td>
			$3,533,839
			</td>
			<td>
			$0.31
			</td>
			<td>
			67,145,900
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			158,268,446
			</td>
			<td>
			2,650,300
			</td>
			<td>
			$3,346,685
			</td>
			<td>
			$1.26
			</td>
			<td>
			3,068,700
			</td>
		</tr>
<tr>
<td>
			HO BEE LAND
			</td>
			<td>
			33,261,530
			</td>
			<td>
			1,133,700
			</td>
			<td>
			$2,536,179
			</td>
			<td>
			$2.24
			</td>
			<td>
			1,133,700
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			161,476,125
			</td>
			<td>
			11,253,700
			</td>
			<td>
			$1,528,457
			</td>
			<td>
			$0.14
			</td>
			<td>
			22,254,500
			</td>
		</tr>
<tr>
<td>
			YHI INTERNATIONAL
			</td>
			<td>
			29,229,581
			</td>
			<td>
			1,593,800
			</td>
			<td>
			$569,538
			</td>
			<td>
			$0.36
			</td>
			<td>
			1,793,800
			</td>
		</tr>
<tr>
<td>
			BOUSTEAD SINGAPORE
			</td>
			<td>
			48,714,422
			</td>
			<td>
			708,800
			</td>
			<td>
			$489,939
			</td>
			<td>
			$0.69
			</td>
			<td>
			708,800
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			27,331,270
			</td>
			<td>
			133,000
			</td>
			<td>
			$466,899
			</td>
			<td>
			$3.51
			</td>
			<td>
			278,000
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS
			</td>
			<td>
			97,226,160
			</td>
			<td>
			1,271,500
			</td>
			<td>
			$449,886
			</td>
			<td>
			$0.35
			</td>
			<td>
			1,481,500
			</td>
		</tr>
<tr>
<td>
			STARBURST HOLDINGS
			</td>
			<td>
			12,171,506
			</td>
			<td>
			776,200
			</td>
			<td>
			$318,557
			</td>
			<td>
			$0.41
			</td>
			<td>
			776,200
			</td>
		</tr>
<tr>
<td>
			GKE CORPORATION
			</td>
			<td>
			77,617,409
			</td>
			<td>
			2,000,000
			</td>
			<td>
			$155,868
			</td>
			<td>
			$0.08
			</td>
			<td>
			12,357,800
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,597,249
			</td>
			<td>
			250,000
			</td>
			<td>
			$149,675
			</td>
			<td>
			$0.60
			</td>
			<td>
			250,000
			</td>
		</tr>
<tr>
<td>
			TIONG SENG HOLDINGS
			</td>
			<td>
			45,962,384
			</td>
			<td>
			862,400
			</td>
			<td>
			$114,408
			</td>
			<td>
			$0.13
			</td>
			<td>
			862,400
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,019,100
			</td>
			<td>
			455,300
			</td>
			<td>
			$92,128
			</td>
			<td>
			$0.20
			</td>
			<td>
			455,300
			</td>
		</tr>
<tr>
<td>
			ECOWISE HOLDINGS
			</td>
			<td>
			95,648,612
			</td>
			<td>
			1,669,800
			</td>
			<td>
			$50,824
			</td>
			<td>
			$0.03
			</td>
			<td>
			1,669,800
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,086,770
			</td>
			<td>
			202,600
			</td>
			<td>
			$32,604
			</td>
			<td>
			$0.16
			</td>
			<td>
			202,600
			</td>
		</tr>
<tr>
<td>
			LY CORPORATION
			</td>
			<td>
			48,914,420
			</td>
			<td>
			155,000
			</td>
			<td>
			$27,372
			</td>
			<td>
			$0.18
			</td>
			<td>
			175,000
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,292,587
			</td>
			<td>
			73,000
			</td>
			<td>
			$18,715
			</td>
			<td>
			$0.26
			</td>
			<td>
			78,000
			</td>
		</tr>
<tr>
<td>
			MDR
			</td>
			<td>
			89,039,757
			</td>
			<td>
			142,200
			</td>
			<td>
			$11,478
			</td>
			<td>
			$0.08
			</td>
			<td>
			443,100
			</td>
		</tr>
<tr>
<td>
			KIM HENG OFFSHORE &amp; MARINE HOLDINGS
			</td>
			<td>
			70,820,730
			</td>
			<td>
			300,000
			</td>
			<td>
			$9,385
			</td>
			<td>
			$0.03
			</td>
			<td>
			300,000
			</td>
		</tr>
<tr>
<td>
			CHOO CHIANG HOLDINGS
			</td>
			<td>
			20,800,000
			</td>
			<td>
			5,500
			</td>
			<td>
			$1,235
			</td>
			<td>
			$0.22
			</td>
			<td>
			61,300
			</td>
		</tr>
<tr>
<td>
			HRNETGROUP
			</td>
			<td>
			100,652,263
			</td>
			<td>
			2,300
			</td>
			<td>
			$1,130
			</td>
			<td>
			$0.49
			</td>
			<td>
			131,000
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			57,557,804
			</td>
			<td>
			$43,074,417
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX (Data as of 30 September 2020) 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 can pick up amidst market declines that are driven by broader moves on 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="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.
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In September, 24 SGX primary-listed stocks bought back shares for a total consideration of S$43 million, higher than the S$15 million in consideration for August 2020, and seasonally higher than the S$15 million buyback consideration also reported in September 2019.  
	 
	
STI constituents Yangzijiang Shipbuilding (Holdings), Keppel Corporation and Singapore Technologies Engineering led the buyback consideration in September. As many as nine companies commenced new mandates, which included Ho Bee Land and Boustead Singapore.  
	 
	While the STI declined 2.6% in September, together the SPDR® STI ETF and Nikko AM STI ETF added net creations of S$103 million in September as investors continued to accumulate units. The S$807 million in  combined net creations for the two ETFS in the first nine months of 2020 is up 359% from the entire 2019 year.

 

Total share buyback consideration for the month of September totaled S$43.1 million, up from $15.1 million in August (click here for more) and up from up from S$2.9 million in July (click here for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$724 million for the first nine months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$724 million represents 0.09% of the combined S$797.8 billion in market capitalisation of all stocks listed on Singapore Exchange at the end of September.  
The S$43.1 million in September buyback consideration coincided with a 2.6% price decline in the Straits Times Index (“STI”) to 2,466.62.  
The STI’s 2.6% decline in  September saw its 10-day historical volatility end at 11.5%, similar to the August month-end level of 11.8%. However, during the month the STI 10-day historical volatility reached a low of 4.5%, levels not seen since January 2020.  For context, on 15 June, the STI 10-day historical volatility reached as high as 34%, and as high as 80% on 25 March and 31 March.



      
    
    Buyback Consideration


Together, the SPDR® STI ETF and Nikko AM STI ETF garnered net creations of S$807 million over the first nine months of 2020 as investors accumulated units amidst the market declines. The S$807 million is up 359% from the total net creations of S$176 million for the entire 2019 year.  As many as nine of the 24 companies commenced new buyback mandates in September – Ho Bee Land, Boustead Singapore, Starburst Holdings, Food Empire Holdings, Tiong Seng Holdings, Nordic Group, ecoWise Holdings, Eurosports Global and Kim Heng Offshore &amp; Marine Holdings. This followed on from 11 companies - Keppel Corporation, AEM Holdings, First Resources, Straco Corporation, Avarga, China Sunsine Chemical Holdings, YHI International, HRnetGroup, MDR, Ban Leong Technologies and Intraco, commencing new buyback mandates in August.  The table below summarises the buyback considerations in September 2020. 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.




			Stocks
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Total Number of Shares/units Purchased in Sep 2020
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Sep 2020
			
			
			Average Price Paid S$
			
			
			Cumulative Number of Shares/units purchased in Mandate to date
			
		


			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			
			
			391,876,520
			
			
			17,277,700
			
			
			$16,426,385
			
			
			$0.95
			
			
			30,004,500
			
		


			KEPPEL CORPORATION
			
			
			36,410,340
			
			
			1,940,904
			
			
			$8,476,410
			
			
			$4.37
			
			
			3,061,504
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,429,441
			
			
			1,250,000
			
			
			$4,266,822
			
			
			$3.41
			
			
			6,250,000
			
		


			SILVERLAKE AXIS
			
			
			264,505,273
			
			
			11,450,100
			
			
			$3,533,839
			
			
			$0.31
			
			
			67,145,900
			
		


			FIRST RESOURCES
			
			
			158,268,446
			
			
			2,650,300
			
			
			$3,346,685
			
			
			$1.26
			
			
			3,068,700
			
		


			HO BEE LAND
			
			
			33,261,530
			
			
			1,133,700
			
			
			$2,536,179
			
			
			$2.24
			
			
			1,133,700
			
		


			GLOBAL INVESTMENTS
			
			
			161,476,125
			
			
			11,253,700
			
			
			$1,528,457
			
			
			$0.14
			
			
			22,254,500
			
		


			YHI INTERNATIONAL
			
			
			29,229,581
			
			
			1,593,800
			
			
			$569,538
			
			
			$0.36
			
			
			1,793,800
			
		


			BOUSTEAD SINGAPORE
			
			
			48,714,422
			
			
			708,800
			
			
			$489,939
			
			
			$0.69
			
			
			708,800
			
		


			AEM HOLDINGS
			
			
			27,331,270
			
			
			133,000
			
			
			$466,899
			
			
			$3.51
			
			
			278,000
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS
			
			
			97,226,160
			
			
			1,271,500
			
			
			$449,886
			
			
			$0.35
			
			
			1,481,500
			
		


			STARBURST HOLDINGS
			
			
			12,171,506
			
			
			776,200
			
			
			$318,557
			
			
			$0.41
			
			
			776,200
			
		


			GKE CORPORATION
			
			
			77,617,409
			
			
			2,000,000
			
			
			$155,868
			
			
			$0.08
			
			
			12,357,800
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,597,249
			
			
			250,000
			
			
			$149,675
			
			
			$0.60
			
			
			250,000
			
		


			TIONG SENG HOLDINGS
			
			
			45,962,384
			
			
			862,400
			
			
			$114,408
			
			
			$0.13
			
			
			862,400
			
		


			NORDIC GROUP
			
			
			39,019,100
			
			
			455,300
			
			
			$92,128
			
			
			$0.20
			
			
			455,300
			
		


			ECOWISE HOLDINGS
			
			
			95,648,612
			
			
			1,669,800
			
			
			$50,824
			
			
			$0.03
			
			
			1,669,800
			
		


			EUROSPORTS GLOBAL
			
			
			26,086,770
			
			
			202,600
			
			
			$32,604
			
			
			$0.16
			
			
			202,600
			
		


			LY CORPORATION
			
			
			48,914,420
			
			
			155,000
			
			
			$27,372
			
			
			$0.18
			
			
			175,000
			
		


			INTRACO
			
			
			10,292,587
			
			
			73,000
			
			
			$18,715
			
			
			$0.26
			
			
			78,000
			
		


			MDR
			
			
			89,039,757
			
			
			142,200
			
			
			$11,478
			
			
			$0.08
			
			
			443,100
			
		


			KIM HENG OFFSHORE &amp; MARINE HOLDINGS
			
			
			70,820,730
			
			
			300,000
			
			
			$9,385
			
			
			$0.03
			
			
			300,000
			
		


			CHOO CHIANG HOLDINGS
			
			
			20,800,000
			
			
			5,500
			
			
			$1,235
			
			
			$0.22
			
			
			61,300
			
		


			HRNETGROUP
			
			
			100,652,263
			
			
			2,300
			
			
			$1,130
			
			
			$0.49
			
			
			131,000
			
		


			Total
			
			
			 
			
			
			57,557,804
			
			
			$43,074,417
			
			
			 
			
			
			 
			
		

Source: SGX (Data as of 30 September 2020)  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 can pick up amidst market declines that are driven by broader moves on 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 its quarterly financial statements and one month immediately before the full-year financial statements.



Share Buyback Consideration Reaches 6M High in September

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<li>
In August, 18 SGX primary-listed stocks bought back shares for a total consideration of S$15 million, higher than the S$3 million in consideration for July 2020, and seasonally lower than the S$70 million buyback consideration reported in August 2019. 
	 </li>
	<li>
STI constituents Singapore Technologies Engineering and Keppel Corporation led the buyback consideration in August. As many as 11 companies commenced new mandates, which included Keppel Corporation, AEM Holdings, First Resources and Straco Corporation.   
	 </li>
	<li>The STI booked its first price gain in August since 2006. Together, the SPDR® STI ETF and Nikko AM STI ETF saw net creations of S$704 million over the first eight months of 2020 as investors continued to accumulate units. The S$704 million is up 300% from total net creations of S$176 million for the entire 2019 year.</li>
</ul>
  
Total share buyback consideration for the month of August totaled S$15.1 million, up from S$2.9 million in July (click <a href="https://www.sgx.com/research-education/market-updates/20200804-buyback-consideration-modern-low-earnings-take-centre">here</a> for more) and up from S$12.6 million in June (click <a href="https://www.sgx.com/research-education/market-updates/20200701-more-80-singapore-stocks-conducted-buybacks-1h20">here</a> for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$681 million for the first eight months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$681 million represents 0.08% of the combined S$815 billion in market capitalisation of all stocks listed on Singapore Exchange at the end of August. 
The S$15.1 million in August buyback consideration coincided with a 0.1% price gain in the Straits Times Index (“STI”) to 2,532.51, the narrowest monthly price move by the STI since March 2019. Dividend distributions boost the STI total return in August to 1.1%. This was the also the first time since 2006, that the STI booked a price gain in the month of August. The total number of COVID-19 cases grew from 17 million at the end of July, to 25 million at the end of August, whilst the total mortality rate declined from 3.9% to 3.4%. 
The STI’s 0.1% price gain in August saw its 10-day historical volatility again contained between 10% and 20% for the entire month. For context, on 15 June, the STI 10-day historical volatility reached as high as 34%, and as high as 80% on 25 March and 31 March.
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Source: SGX (Data as of 31 August 2020)

Together, the SPDR® STI ETF and Nikko AM STI ETF garnered net creations of S$704 million over the first eight months of 2020 as investors accumulated units amidst the market declines. The S$704 million is up 300% from the total net creations of S$176 million for the entire 2019 year. As many as 11 of the 18 companies commenced new buyback mandates in August - Keppel Corporation, AEM Holdings, First Resources, Straco Corporation, Avarga, China Sunsine Chemical Holdings, YHI International, HRnetGroup, MDR, Ban Leong Technologies and Intraco. The table below summarises the buyback considerations in August 2020. 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>
			Stocks
			</td>
			<td>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in August 2020
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in August 2020
			</td>
			<td>
			Average Price Paid S$
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,429,441
			</td>
			<td>
			2,000,000
			</td>
			<td>
			$6,834,114
			</td>
			<td>
			$3.417
			</td>
			<td>
			5,000,000
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORPORATION
			</td>
			<td>
			36,410,340
			</td>
			<td>
			1,120,600
			</td>
			<td>
			$5,198,660
			</td>
			<td>
			$4.639
			</td>
			<td>
			1,120,600
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			161,476,125
			</td>
			<td>
			6,800,000
			</td>
			<td>
			$933,582
			</td>
			<td>
			$0.137
			</td>
			<td>
			11,000,800
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			27,331,270
			</td>
			<td>
			145,000
			</td>
			<td>
			$592,621
			</td>
			<td>
			$4.087
			</td>
			<td>
			145,000
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			158,268,446
			</td>
			<td>
			418,400
			</td>
			<td>
			$545,419
			</td>
			<td>
			$1.304
			</td>
			<td>
			418,400
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION
			</td>
			<td>
			86,213,958
			</td>
			<td>
			550,000
			</td>
			<td>
			$273,354
			</td>
			<td>
			$0.497
			</td>
			<td>
			550,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE O&amp;G
			</td>
			<td>
			47,680,300
			</td>
			<td>
			803,724
			</td>
			<td>
			$196,268
			</td>
			<td>
			$0.244
			</td>
			<td>
			1,999,990
			</td>
		</tr>
<tr>
<td>
			GKE CORPORATION
			</td>
			<td>
			78,853,189
			</td>
			<td>
			1,500,000
			</td>
			<td>
			$118,742
			</td>
			<td>
			$0.079
			</td>
			<td>
			10,857,800
			</td>
		</tr>
<tr>
<td>
			AVARGA
			</td>
			<td>
			94,710,834
			</td>
			<td>
			539,800
			</td>
			<td>
			$81,101
			</td>
			<td>
			$0.150
			</td>
			<td>
			539,800
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS
			</td>
			<td>
			97,226,160
			</td>
			<td>
			210,000
			</td>
			<td>
			$74,532
			</td>
			<td>
			$0.355
			</td>
			<td>
			210,000
			</td>
		</tr>
<tr>
<td>
			YHI INTERNATIONAL
			</td>
			<td>
			29,229,581
			</td>
			<td>
			200,000
			</td>
			<td>
			$65,077
			</td>
			<td>
			$0.325
			</td>
			<td>
			200,000
			</td>
		</tr>
<tr>
<td>
			HRNETGROUP
			</td>
			<td>
			100,652,263
			</td>
			<td>
			128,700
			</td>
			<td>
			$63,618
			</td>
			<td>
			$0.494
			</td>
			<td>
			128,700
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,220,160
			</td>
			<td>
			300,000
			</td>
			<td>
			$49,787
			</td>
			<td>
			$0.166
			</td>
			<td>
			1,333,900
			</td>
		</tr>
<tr>
<td>
			JAPAN FOODS HOLDING
			</td>
			<td>
			17,360,290
			</td>
			<td>
			100,000
			</td>
			<td>
			$29,671
			</td>
			<td>
			$0.297
			</td>
			<td>
			235,700
			</td>
		</tr>
<tr>
<td>
			MDR
			</td>
			<td>
			89,039,757
			</td>
			<td>
			300,900
			</td>
			<td>
			$26,361
			</td>
			<td>
			$0.088
			</td>
			<td>
			300,900
			</td>
		</tr>
<tr>
<td>
			BAN LEONG TECHNOLOGIES
			</td>
			<td>
			11,392,300
			</td>
			<td>
			62,500
			</td>
			<td>
			$15,929
			</td>
			<td>
			$0.255
			</td>
			<td>
			62,500
			</td>
		</tr>
<tr>
<td>
			CHOO CHIANG HOLDINGS
			</td>
			<td>
			20,800,000
			</td>
			<td>
			46,800
			</td>
			<td>
			$9,862
			</td>
			<td>
			$0.211
			</td>
			<td>
			55,800
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,292,587
			</td>
			<td>
			5,000
			</td>
			<td>
			$1,253
			</td>
			<td>
			$0.251
			</td>
			<td>
			5,000
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			15,231,424
			</td>
			<td>
			$15,109,950
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX (Data as of 31 August 2020)

 

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 can pick up amidst market declines that are driven by broader moves on 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="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 August, 18 SGX primary-listed stocks bought back shares for a total consideration of S$15 million, higher than the S$3 million in consideration for July 2020, and seasonally lower than the S$70 million buyback consideration reported in August 2019.  
	 
	
STI constituents Singapore Technologies Engineering and Keppel Corporation led the buyback consideration in August. As many as 11 companies commenced new mandates, which included Keppel Corporation, AEM Holdings, First Resources and Straco Corporation.    
	 
	The STI booked its first price gain in August since 2006. Together, the SPDR® STI ETF and Nikko AM STI ETF saw net creations of S$704 million over the first eight months of 2020 as investors continued to accumulate units. The S$704 million is up 300% from total net creations of S$176 million for the entire 2019 year.

  
Total share buyback consideration for the month of August totaled S$15.1 million, up from S$2.9 million in July (click here for more) and up from S$12.6 million in June (click here for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$681 million for the first eight months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$681 million represents 0.08% of the combined S$815 billion in market capitalisation of all stocks listed on Singapore Exchange at the end of August.  
The S$15.1 million in August buyback consideration coincided with a 0.1% price gain in the Straits Times Index (“STI”) to 2,532.51, the narrowest monthly price move by the STI since March 2019. Dividend distributions boost the STI total return in August to 1.1%. This was the also the first time since 2006, that the STI booked a price gain in the month of August. The total number of COVID-19 cases grew from 17 million at the end of July, to 25 million at the end of August, whilst the total mortality rate declined from 3.9% to 3.4%.  
The STI’s 0.1% price gain in August saw its 10-day historical volatility again contained between 10% and 20% for the entire month. For context, on 15 June, the STI 10-day historical volatility reached as high as 34%, and as high as 80% on 25 March and 31 March.



      
    
    Buyback Consideration

      
    
    Buyback Consideration


Source: SGX (Data as of 31 August 2020)

Together, the SPDR® STI ETF and Nikko AM STI ETF garnered net creations of S$704 million over the first eight months of 2020 as investors accumulated units amidst the market declines. The S$704 million is up 300% from the total net creations of S$176 million for the entire 2019 year.  As many as 11 of the 18 companies commenced new buyback mandates in August - Keppel Corporation, AEM Holdings, First Resources, Straco Corporation, Avarga, China Sunsine Chemical Holdings, YHI International, HRnetGroup, MDR, Ban Leong Technologies and Intraco.  The table below summarises the buyback considerations in August 2020. 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.




			Stocks
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Total Number of Shares/units Purchased in August 2020
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in August 2020
			
			
			Average Price Paid S$
			
			
			Cumulative Number of Shares/units purchased in Mandate to date
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,429,441
			
			
			2,000,000
			
			
			$6,834,114
			
			
			$3.417
			
			
			5,000,000
			
		


			KEPPEL CORPORATION
			
			
			36,410,340
			
			
			1,120,600
			
			
			$5,198,660
			
			
			$4.639
			
			
			1,120,600
			
		


			GLOBAL INVESTMENTS
			
			
			161,476,125
			
			
			6,800,000
			
			
			$933,582
			
			
			$0.137
			
			
			11,000,800
			
		


			AEM HOLDINGS
			
			
			27,331,270
			
			
			145,000
			
			
			$592,621
			
			
			$4.087
			
			
			145,000
			
		


			FIRST RESOURCES
			
			
			158,268,446
			
			
			418,400
			
			
			$545,419
			
			
			$1.304
			
			
			418,400
			
		


			STRACO CORPORATION
			
			
			86,213,958
			
			
			550,000
			
			
			$273,354
			
			
			$0.497
			
			
			550,000
			
		


			SINGAPORE O&amp;G
			
			
			47,680,300
			
			
			803,724
			
			
			$196,268
			
			
			$0.244
			
			
			1,999,990
			
		


			GKE CORPORATION
			
			
			78,853,189
			
			
			1,500,000
			
			
			$118,742
			
			
			$0.079
			
			
			10,857,800
			
		


			AVARGA
			
			
			94,710,834
			
			
			539,800
			
			
			$81,101
			
			
			$0.150
			
			
			539,800
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS
			
			
			97,226,160
			
			
			210,000
			
			
			$74,532
			
			
			$0.355
			
			
			210,000
			
		


			YHI INTERNATIONAL
			
			
			29,229,581
			
			
			200,000
			
			
			$65,077
			
			
			$0.325
			
			
			200,000
			
		


			HRNETGROUP
			
			
			100,652,263
			
			
			128,700
			
			
			$63,618
			
			
			$0.494
			
			
			128,700
			
		


			EUROSPORTS GLOBAL
			
			
			26,220,160
			
			
			300,000
			
			
			$49,787
			
			
			$0.166
			
			
			1,333,900
			
		


			JAPAN FOODS HOLDING
			
			
			17,360,290
			
			
			100,000
			
			
			$29,671
			
			
			$0.297
			
			
			235,700
			
		


			MDR
			
			
			89,039,757
			
			
			300,900
			
			
			$26,361
			
			
			$0.088
			
			
			300,900
			
		


			BAN LEONG TECHNOLOGIES
			
			
			11,392,300
			
			
			62,500
			
			
			$15,929
			
			
			$0.255
			
			
			62,500
			
		


			CHOO CHIANG HOLDINGS
			
			
			20,800,000
			
			
			46,800
			
			
			$9,862
			
			
			$0.211
			
			
			55,800
			
		


			INTRACO
			
			
			10,292,587
			
			
			5,000
			
			
			$1,253
			
			
			$0.251
			
			
			5,000
			
		


			Total
			
			
			 
			
			
			15,231,424
			
			
			$15,109,950
			
			
			 
			
			
			 
			
		

Source: SGX (Data as of 31 August 2020)

 

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 can pick up amidst market declines that are driven by broader moves on 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 its quarterly financial statements and one month immediately before the full-year financial statements.



11 Companies Commence New Share Buyback Mandates in August

Singapore

YHI International Limited distributes automotive products comprising tires, alloy wheels, automotive batteries and related products.  The Company also designs, develops, and manufactures alloy wheels.

Share Buyback Consideration Reaches 6M High in September

In September, 24 SGX primary-listed stocks bought back shares for a total consideration of S$43 million, higher than the S$15 million in...

Singapore Exchange Ltd (SGX)

11 Companies Commence New Share Buyback Mandates in August

In August, 18 SGX primary-listed stocks bought back shares for a total consideration of S$15 million, higher than the S$3 million in...

Singapore Exchange Ltd (SGX)