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Hot stock: Best World jumps 10% after share buybacks, director acquisitions
SHARES in Best World International surged on high volume traded in Wednesday’s early session, following a string of share buybacks and director acquisitions.
As at 12.18pm on Wednesday, Best World shares were up S$0.17 or 10.1 per cent at S$1.86, with 9.27 million shares having changed hands.
The Singapore-headquartered group distributes skincare, nutritional and wellness products in Asia and the Middle East.
Its five buybacks by way of market acquisition spanning April 4 to 15 totalled 380,000 shares for S$733,366.89.
Best World’s latest share repurchase on April 15 brought the total number of shares bought back by Best World since the buyback resolution was approved on April 30, 2018 to 0.237 per cent of its issued shares (excluding treasury shares).
In an April 12, 2018 filing, Best World said the buybacks provide a mechanism to facilitate the return of surplus cash over and above its ordinary capital requirements in an expedient, effective and cost-efficient manner.
The buybacks are also intended to “help mitigate short-term market volatility, offset the effects of short-term speculation and bolster the confidence of shareholders”, Best World directors said in the April 12, 2018 filing.
The company’s directors also made several share acquisitions in recent weeks.
Best World’s co-chairmen and presidents Doreen Tan and Dora Hoan each acquired 50,000 shares of the mainboard-listed company between April 9 and 10. This was after they had each acquired 50,000 shares on April 4.
The latest jump in Best World's share price reverses the downtrend since last Wednesday. Its shares closed at S$2.00 on April 10, before slipping to S$1.69 on April 16.
Just last week, the Singapore Exchange had named Best World shares as one of the 10 worst-performing stocks in the year to April 9, after they averaged a return of -22.1 per cent during the period.