Buying sharply up while buybacks remain strong

THE buying rose for the second straight week with 18 companies that recorded 38 purchases worth S$1.61 million based on filings on the Singapore Exchange in the third week of November. The number of firms and trades were sharply up from the previous week's four-day totals of nine companies and 14 purchases. The buy value, however, was sharply down from the previous week's acquisitions worth S$7.9 million.

The selling, on the other hand, was flat with five firms that recorded nine disposals worth S$0.864 million. The number of companies and trades were consistent with the previous week's three firms and seven disposals. The sell value, however, was up from the previous week's disposals worth S$0.61 million.

Meanwhile, buyback activity remained high with 15 companies that posted 46 repurchases worth S$9.08 million. The figures were consistent with the previous week's 11 firms, 35 trades and S$7.53 million. Investors should note that the huge drop in the market since April from 3,500 points to 2,800 points in September resulted in a surge in the buyback activity with S$562 million worth of repurchases in August, S$445 million in September and S$127 million in October. This is the biggest spike in the buyback activity since 2004. The buyback activity has slowed significantly this month with only S$25.6 million worth of repurchases so far in November which is a sign that share prices have bottomed.