Hot stock: Jardine Matheson up as much as 4.7% on proposed US$250m share buyback

SHARES of Jardine Matheson Holdings (JMH) J36 saw brisk trading in the morning on Thursday after the group said it was proposing a US$250 million share buyback plan.

The counter reached a high of US$53.45 as at 9am, up US$2.42 or 4.7 per cent.

No married deals were recorded, according to ShareInvestor data.

As at 9.25am, the counter saw 118,800 shares worth US$6.3 million changing hands. Its shares had eased slightly to trade at US$53.29, up US$2.26 or 4.4 per cent.

JMH is intending to return up to US$250 million to its shareholders by June 30, 2022, it said in a bourse filing on Thursday morning.

It added that the purpose of the share buyback is to reduce the capital of the company, and is in line with Jardine Matheson Group's previously announced capital allocation policy.

"The group remains committed to returning gearing nearer to historic levels over the medium term, following the simplification of the group's holding structure earlier in the year," JMH said.

Earlier this month, Hongkong Land - a member of the Jardine Matheson Group - also announced it was proposing a US$500 million share buyback programme, which will be extended until Dec 31, 2022.

Hongkong Land owns and manages office and luxury retail properties in Hong Kong, Singapore, Beijing and Jakarta.

JMH had reported a net loss of US$117 million for the first half ended June 30, 2021, narrowing from US$775 million a year ago. The mainboard-listed group recorded a non-trading net loss of US$732 million in H1, compared with US$1.1 billion a year ago, largely due to semi-annual revaluation of investment properties in Hongkong Land.

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