Rising buybacks by SGX listcos unsurprising given market weakness, but could fall in 2023: analysts

COMPANIES primarily listed in Singapore have been on a share-buyback spree over the past four years, with nearly S$1.7 billion spent in 2022 on such activity.

Market watchers said the rise in buybacks is unsurprising given the local market’s weakness, but might not persist if economic conditions worsen.

Market updates from bourse operator Singapore Exchange (SGX) released this month showed 86 primary-listed companies here bought back shares in 2022, with a year-on-year increase of about 40 per cent in total outlay (including stamp duties and relevant charges). It was the fourth year running that buybacks had increased in the Singapore market.