Buybacks down in '16 from record '15

IT WAS a relatively quiet year for buybacks in the Singapore market after the record setting year in 2015, with 108 companies that recorded 1,879 filings worth S$825 million in 2016. The figures were down from the previous year's 113 firms, 2,093 filings and S$1.982 billion. Investors should note that the buybacks in 2015 are the highest yearly totals since repurchases were introduced by the Singapore Exchange in 1999.

Although the buyback activity in 2016 was down from 2015, the buyback totals last year were relatively high, based on the yearly averages of 87 companies, 1,384 filings and S$835 million from 2008 to 2015. Historically, the buybacks in 2016 were sharply up from the yearly averages of 56 firms, 918 filings and S$682 million from 2000 to 2015.

Stock price performances in 2016 left much to be desired as price falls at the end of the year outnumbered gainers 48 to 46 (price gains and falls were based on minimum price change of 2.0 per cent from a company's average buyback price versus the year-end price). The average price increase for the gainers, however, was 23 per cent versus an average drop of 15 per cent for the stocks that recorded price falls at the end of the year.