Share buybacks hit S$586m in Q3, pushing total 9-month consideration up 150% on year

Michelle Zhu
Published Thu, Oct 6, 2022 · 04:05 PM

A TOTAL of 46 primary-listed companies bought back shares amounting to S$586 million in the third quarter of 2022, announced the Singapore Exchange (SGX) in a market update on Thursday (Oct 6).

This brings the total buyback consideration for the first nine months of 2022 to slightly over S$1.5 billion – up about 150 per cent from S$609 million for the nine months in 2021.

While the quarter’s total consideration was down from S$657 million for the previous quarter, it was higher than the S$241 million in consideration recorded in Q3 of 2021. Buybacks for the quarter were conducted at an average price of S$0.382 per share.

July 2022 saw the least monthly buyback consideration filed for Singapore’s primary-listed stocks since the same period a year ago. SGX attributed this to a seasonal effect leading into seasonal semi-annual reporting.

The following month of August 2022 saw the highest buyback since the “comparatively more volatile” conditions of March 2020, added the bourse.

The Straits Times Index (STI) generated a 0.9 per cent price gain over Q3 of 2022, with dividends boosting total returns to 2.4 per cent. This is compared to a 3.2 per cent decline in total returns for the international FTSE Developed Index, weighed by the declines of global technology and bank stocks.

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During Q3, 41 per cent of trading sessions saw STI annualised 30-day volatility of above 10 per cent – down from 89 per cent in the previous quarter.

SGX noted that the two STI exchange-traded funds (ETFs) attracted moderate net inflows totalling S$19 million, while the broader Singapore stock market attracted more than S$800 million of net fund inflows.

Index counter Wilmar International : F34 0% contributed the largest buyback consideration for Q3, purchasing 34.6 million shares worth S$140.5 million. The average price paid per share for the agribusiness group was S$4.065.

This was followed by Keppel Corporation : BN4 0% and OCBC : O39 0%, which bought back 19 million securities amounting to a consideration of S$136.2 million, and eight million shares worth a consideration of S$97.2 million, respectively, at the average per-share prices of S$7.159 and S$12.148.

Among non-STI stocks, Yangzijiang Financial Holding : YF8 0% and The Hour Glass : AGS 0% were among the top buyback consideration contributors of Q3.

The financial segment spin-off of Yangzijiang Shipbuilding had bought 5.2 per cent of its issued shares, excluding treasury shares, as at end-September at an average price of S$0.382 per share.

Upon commencing a new buyback mandate during the quarter, luxury watch retailer The Hour Glass bought back 2.1 per cent of its shares between Aug 3 and Sep 30. Its previous mandate saw 3.5 per cent of its shares bought back through to Jul 26, bringing a total buyback volume of 14 million shares in Q3 at the average price of S$2.23 per share. 

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