Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<ul>
<li>
In October, 28 primary-listed Singapore stocks bought back shares for a total consideration of S$22 million, less than the S$43 million in consideration for September 2020, and higher than the S$15 million buyback consideration reported in October 2019. 
	 </li>
	<li>
STI constituents - Yangzijiang Shipbuilding (Holdings), Singapore Technologies Engineering and Sembcorp Industries - were amongst the five stocks with the highest buyback consideration in October. As many as seven companies commenced new mandates, which included Sembcorp Industries and OUE. 
	 </li>
	<li>
shopper360 also commenced a new mandate, and between 18 October and 28 October, bought back 2.5% of its issued shares (excl. treasury shares) as of the date of the share buyback resolution. The Catalist-listed stock generated a 10% price gain in October, bringing its decline over the first 10 months of 2020 to 23%.  
	 </li>
</ul>
Total share buyback consideration for the month of October totaled S$22.2 million up from S$43.1 million in September (click <a href="https://www.sgx.com/research-education/market-updates/20200901-11-companies-commence-new-share-buyback-mandates-august">here</a> for more) and up from $15.1 million in August (click <a href="https://www.sgx.com/research-education/market-updates/20200901-11-companies-commence-new-share-buyback-mandates-august">here</a> for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$746 million for the first 10 months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$746 million represents 0.09% of the combined S$788.0 billion in market capitalisation of all stocks listed on Singapore Exchange (“SGX”) at the end of October.

The S$22.2 million in October buyback consideration coincided with a 1.7% price decline in the Straits Times Index (“STI”) from 2,466.62 to 2,423.84 over the month.

The STI’s 1.7% decline in October saw its 10-day historical volatility move to 9.5%, from 11.5% at the end of September that was in-turn down from 11.8% at the end of August. This year, the STI 10-day historical volatility reached as high as 80% on 25 March and 31 March, as high as 34% on 15 June and as low as 5% on 14 September.
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<figure>
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 <div class='content-caption'>Buybacks Oct 2020</div>
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shopper360 Bought Back 2.5% of Its Shares Over a Two-Week Period

Between 18 October and 28 October, Catalist-listed shopper360 bought back 2.5% of its issued shares (excl. treasury shares) as of the date of the share buyback resolution. The effective start date of the current buyback mandate was 29 September 2020 with a prescribed limit of 10%. Another approved resolution at the recent shopper360 AGM on 29 September was the authority to grant awards and to allot and issue shares under the shopper360 Performance Share Plan. Its preceding buyback mandate saw the company buy back 2.4% of its issued shares (excl. treasury shares).

For the month of October, the shopper360 share price increased 10%, from 9.0 cents per share to 9.9 cents per share. The Group is a well-established provider of shopper marketing services in the retail and consumer goods industries in Malaysia and have more than 30 years of experience in the in-store advertising industry. It offers a comprehensive range of marketing and advertising services that integrate along the entire shopper journey, through in-store experience to loyalty, retention and repeat purchase. For more details, a recent corporate presentation to investors can be found <a href="https://links.sgx.com/1.0.0/corporate-announcements/ML6CA4WAL10SQ9QO/769c91d1d6c541e47181df37460858fdf220b87b4bd29104775bee91d9e0483c">here</a>.

Seven of the 28 primary-listed companies commenced new buybacks in October, which included shopper360 and OUE, HC Surgical Specialists, Cheung Woh Technologies, Trek 2000 International, Anchun International Holdings and Singapore Reinsurance Corporation. This followed on from nine companies that commenced new buyback mandates in September – Ho Bee Land, Boustead Singapore, Starburst Holdings, Food Empire Holdings, Tiong Seng Holdings, Nordic Group, ecoWise Holdings, Eurosports Global and Kim Heng Offshore &amp; Marine Holdings, and 11 companies that commenced new mandates in August.

The table below summarises the buyback considerations in October 2020. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks
			</td>
			<td>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in Oct 2020
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Oct 2020
			</td>
			<td>
			Average Price Paid S$
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			</td>
			<td>
			391,876,520
			</td>
			<td>
			9,971,500
			</td>
			<td>
			$9,734,104
			</td>
			<td>
			0.976
			</td>
			<td>
			27,249,200
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			158,268,446
			</td>
			<td>
			1,465,300
			</td>
			<td>
			$1,803,359
			</td>
			<td>
			1.231
			</td>
			<td>
			4,534,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,429,441
			</td>
			<td>
			500,000
			</td>
			<td>
			$1,746,239
			</td>
			<td>
			3.492
			</td>
			<td>
			6,750,000
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			35,711,498
			</td>
			<td>
			959,100
			</td>
			<td>
			$1,533,471
			</td>
			<td>
			1.599
			</td>
			<td>
			959,100
			</td>
		</tr>
<tr>
<td>
			OUE
			</td>
			<td>
			90,061,166
			</td>
			<td>
			1,273,500
			</td>
			<td>
			$1,515,327
			</td>
			<td>
			1.190
			</td>
			<td>
			1,273,500
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION
			</td>
			<td>
			86,213,958
			</td>
			<td>
			2,893,900
			</td>
			<td>
			$1,438,818
			</td>
			<td>
			0.497
			</td>
			<td>
			3,443,900
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			161,476,125
			</td>
			<td>
			8,790,200
			</td>
			<td>
			$1,217,170
			</td>
			<td>
			0.138
			</td>
			<td>
			31,044,700
			</td>
		</tr>
<tr>
<td>
			HONG FOK CORPORATION
			</td>
			<td>
			84,800,184
			</td>
			<td>
			999,300
			</td>
			<td>
			$680,396
			</td>
			<td>
			0.681
			</td>
			<td>
			1,345,900
			</td>
		</tr>
<tr>
<td>
			BOUSTEAD SINGAPORE
			</td>
			<td>
			48,714,422
			</td>
			<td>
			912,300
			</td>
			<td>
			$630,662
			</td>
			<td>
			0.691
			</td>
			<td>
			1,621,100
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,597,249
			</td>
			<td>
			650,000
			</td>
			<td>
			$389,382
			</td>
			<td>
			0.599
			</td>
			<td>
			900,000
			</td>
		</tr>
<tr>
<td>
			HC SURGICAL SPECIALISTS
			</td>
			<td>
			15,104,573
			</td>
			<td>
			1,261,600
			</td>
			<td>
			$387,239
			</td>
			<td>
			0.307
			</td>
			<td>
			1,261,600
			</td>
		</tr>
<tr>
<td>
			SHOPPER360
			</td>
			<td>
			11,166,880
			</td>
			<td>
			2,764,200
			</td>
			<td>
			$270,268
			</td>
			<td>
			0.098
			</td>
			<td>
			2,764,200
			</td>
		</tr>
<tr>
<td>
			HO BEE LAND
			</td>
			<td>
			33,261,530
			</td>
			<td>
			80,500
			</td>
			<td>
			$180,905
			</td>
			<td>
			2.247
			</td>
			<td>
			1,214,200
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,019,100
			</td>
			<td>
			500,000
			</td>
			<td>
			$105,882
			</td>
			<td>
			0.212
			</td>
			<td>
			955,300
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			29,770,450
			</td>
			<td>
			1,004,000
			</td>
			<td>
			$101,117
			</td>
			<td>
			0.101
			</td>
			<td>
			1,004,000
			</td>
		</tr>
<tr>
<td>
			TREK 2000 INTERNATIONAL
			</td>
			<td>
			31,945,342
			</td>
			<td>
			817,600
			</td>
			<td>
			$71,262
			</td>
			<td>
			0.087
			</td>
			<td>
			817,600
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,086,770
			</td>
			<td>
			506,300
			</td>
			<td>
			$70,271
			</td>
			<td>
			0.139
			</td>
			<td>
			708,900
			</td>
		</tr>
<tr>
<td>
			ANCHUN INTERNATIONAL HOLDINGS
			</td>
			<td>
			4,869,090
			</td>
			<td>
			263,700
			</td>
			<td>
			$67,221
			</td>
			<td>
			0.255
			</td>
			<td>
			263,700
			</td>
		</tr>
<tr>
<td>
			MDR
			</td>
			<td>
			89,039,757
			</td>
			<td>
			746,200
			</td>
			<td>
			$59,089
			</td>
			<td>
			0.079
			</td>
			<td>
			1,189,300
			</td>
		</tr>
<tr>
<td>
			SINGAPORE REINSURANCE CORPORATION
			</td>
			<td>
			59,730,798
			</td>
			<td>
			193,900
			</td>
			<td>
			$55,935
			</td>
			<td>
			0.288
			</td>
			<td>
			193,900
			</td>
		</tr>
<tr>
<td>
			GKE CORPORATION
			</td>
			<td>
			77,617,409
			</td>
			<td>
			500,000
			</td>
			<td>
			$40,082
			</td>
			<td>
			0.080
			</td>
			<td>
			1,000,000
			</td>
		</tr>
<tr>
<td>
			STARBURST HOLDINGS
			</td>
			<td>
			12,171,506
			</td>
			<td>
			95,000
			</td>
			<td>
			$39,449
			</td>
			<td>
			0.415
			</td>
			<td>
			871,200
			</td>
		</tr>
<tr>
<td>
			YHI INTERNATIONAL
			</td>
			<td>
			29,229,581
			</td>
			<td>
			102,200
			</td>
			<td>
			$36,896
			</td>
			<td>
			0.361
			</td>
			<td>
			1,896,000
			</td>
		</tr>
<tr>
<td>
			TIONG SENG HOLDINGS
			</td>
			<td>
			45,962,384
			</td>
			<td>
			200,000
			</td>
			<td>
			$27,968
			</td>
			<td>
			0.140
			</td>
			<td>
			1,062,400
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS
			</td>
			<td>
			97,226,160
			</td>
			<td>
			60,000
			</td>
			<td>
			$20,442
			</td>
			<td>
			0.341
			</td>
			<td>
			1,541,500
			</td>
		</tr>
<tr>
<td>
			LY CORPORATION
			</td>
			<td>
			48,914,420
			</td>
			<td>
			70,000
			</td>
			<td>
			$13,307
			</td>
			<td>
			0.190
			</td>
			<td>
			245,000
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,292,587
			</td>
			<td>
			21,000
			</td>
			<td>
			$4,788
			</td>
			<td>
			0.228
			</td>
			<td>
			99,000
			</td>
		</tr>
<tr>
<td>
			CHOO CHIANG HOLDINGS
			</td>
			<td>
			20,800,000
			</td>
			<td>
			10,000
			</td>
			<td>
			$2,178
			</td>
			<td>
			0.218
			</td>
			<td>
			71,300
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			37,611,300
			</td>
			<td>
			$22,243,226
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX (Data as of 30 October 2020)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they can be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. Buybacks can pick up amidst market declines that are driven by broader moves on international macroeconomic developments.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click <a href="http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.
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In October, 28 primary-listed Singapore stocks bought back shares for a total consideration of S$22 million, less than the S$43 million in consideration for September 2020, and higher than the S$15 million buyback consideration reported in October 2019.  
	 
	
STI constituents - Yangzijiang Shipbuilding (Holdings), Singapore Technologies Engineering and Sembcorp Industries - were amongst the five stocks with the highest buyback consideration in October. As many as seven companies commenced new mandates, which included Sembcorp Industries and OUE.  
	 
	
shopper360 also commenced a new mandate, and between 18 October and 28 October, bought back 2.5% of its issued shares (excl. treasury shares) as of the date of the share buyback resolution. The Catalist-listed stock generated a 10% price gain in October, bringing its decline over the first 10 months of 2020 to 23%.  
	 

Total share buyback consideration for the month of October totaled S$22.2 million up from S$43.1 million in September (click here for more) and up from $15.1 million in August (click here for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$746 million for the first 10 months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$746 million represents 0.09% of the combined S$788.0 billion in market capitalisation of all stocks listed on Singapore Exchange (“SGX”) at the end of October.

The S$22.2 million in October buyback consideration coincided with a 1.7% price decline in the Straits Times Index (“STI”) from 2,466.62 to 2,423.84 over the month.

The STI’s 1.7% decline in October saw its 10-day historical volatility move to 9.5%, from 11.5% at the end of September that was in-turn down from 11.8% at the end of August. This year, the STI 10-day historical volatility reached as high as 80% on 25 March and 31 March, as high as 34% on 15 June and as low as 5% on 14 September.



      
    
    Buybacks Oct 2020


shopper360 Bought Back 2.5% of Its Shares Over a Two-Week Period

Between 18 October and 28 October, Catalist-listed shopper360 bought back 2.5% of its issued shares (excl. treasury shares) as of the date of the share buyback resolution. The effective start date of the current buyback mandate was 29 September 2020 with a prescribed limit of 10%. Another approved resolution at the recent shopper360 AGM on 29 September was the authority to grant awards and to allot and issue shares under the shopper360 Performance Share Plan. Its preceding buyback mandate saw the company buy back 2.4% of its issued shares (excl. treasury shares).

For the month of October, the shopper360 share price increased 10%, from 9.0 cents per share to 9.9 cents per share. The Group is a well-established provider of shopper marketing services in the retail and consumer goods industries in Malaysia and have more than 30 years of experience in the in-store advertising industry. It offers a comprehensive range of marketing and advertising services that integrate along the entire shopper journey, through in-store experience to loyalty, retention and repeat purchase. For more details, a recent corporate presentation to investors can be found here.

Seven of the 28 primary-listed companies commenced new buybacks in October, which included shopper360 and OUE, HC Surgical Specialists, Cheung Woh Technologies, Trek 2000 International, Anchun International Holdings and Singapore Reinsurance Corporation. This followed on from nine companies that commenced new buyback mandates in September – Ho Bee Land, Boustead Singapore, Starburst Holdings, Food Empire Holdings, Tiong Seng Holdings, Nordic Group, ecoWise Holdings, Eurosports Global and Kim Heng Offshore &amp; Marine Holdings, and 11 companies that commenced new mandates in August.

The table below summarises the buyback considerations in October 2020. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions.




			Stocks
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Total Number of Shares/units Purchased in Oct 2020
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Oct 2020
			
			
			Average Price Paid S$
			
			
			Cumulative Number of Shares/units purchased in Mandate to date
			
		


			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			
			
			391,876,520
			
			
			9,971,500
			
			
			$9,734,104
			
			
			0.976
			
			
			27,249,200
			
		


			FIRST RESOURCES
			
			
			158,268,446
			
			
			1,465,300
			
			
			$1,803,359
			
			
			1.231
			
			
			4,534,000
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,429,441
			
			
			500,000
			
			
			$1,746,239
			
			
			3.492
			
			
			6,750,000
			
		


			SEMBCORP INDUSTRIES
			
			
			35,711,498
			
			
			959,100
			
			
			$1,533,471
			
			
			1.599
			
			
			959,100
			
		


			OUE
			
			
			90,061,166
			
			
			1,273,500
			
			
			$1,515,327
			
			
			1.190
			
			
			1,273,500
			
		


			STRACO CORPORATION
			
			
			86,213,958
			
			
			2,893,900
			
			
			$1,438,818
			
			
			0.497
			
			
			3,443,900
			
		


			GLOBAL INVESTMENTS
			
			
			161,476,125
			
			
			8,790,200
			
			
			$1,217,170
			
			
			0.138
			
			
			31,044,700
			
		


			HONG FOK CORPORATION
			
			
			84,800,184
			
			
			999,300
			
			
			$680,396
			
			
			0.681
			
			
			1,345,900
			
		


			BOUSTEAD SINGAPORE
			
			
			48,714,422
			
			
			912,300
			
			
			$630,662
			
			
			0.691
			
			
			1,621,100
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,597,249
			
			
			650,000
			
			
			$389,382
			
			
			0.599
			
			
			900,000
			
		


			HC SURGICAL SPECIALISTS
			
			
			15,104,573
			
			
			1,261,600
			
			
			$387,239
			
			
			0.307
			
			
			1,261,600
			
		


			SHOPPER360
			
			
			11,166,880
			
			
			2,764,200
			
			
			$270,268
			
			
			0.098
			
			
			2,764,200
			
		


			HO BEE LAND
			
			
			33,261,530
			
			
			80,500
			
			
			$180,905
			
			
			2.247
			
			
			1,214,200
			
		


			NORDIC GROUP
			
			
			39,019,100
			
			
			500,000
			
			
			$105,882
			
			
			0.212
			
			
			955,300
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			29,770,450
			
			
			1,004,000
			
			
			$101,117
			
			
			0.101
			
			
			1,004,000
			
		


			TREK 2000 INTERNATIONAL
			
			
			31,945,342
			
			
			817,600
			
			
			$71,262
			
			
			0.087
			
			
			817,600
			
		


			EUROSPORTS GLOBAL
			
			
			26,086,770
			
			
			506,300
			
			
			$70,271
			
			
			0.139
			
			
			708,900
			
		


			ANCHUN INTERNATIONAL HOLDINGS
			
			
			4,869,090
			
			
			263,700
			
			
			$67,221
			
			
			0.255
			
			
			263,700
			
		


			MDR
			
			
			89,039,757
			
			
			746,200
			
			
			$59,089
			
			
			0.079
			
			
			1,189,300
			
		


			SINGAPORE REINSURANCE CORPORATION
			
			
			59,730,798
			
			
			193,900
			
			
			$55,935
			
			
			0.288
			
			
			193,900
			
		


			GKE CORPORATION
			
			
			77,617,409
			
			
			500,000
			
			
			$40,082
			
			
			0.080
			
			
			1,000,000
			
		


			STARBURST HOLDINGS
			
			
			12,171,506
			
			
			95,000
			
			
			$39,449
			
			
			0.415
			
			
			871,200
			
		


			YHI INTERNATIONAL
			
			
			29,229,581
			
			
			102,200
			
			
			$36,896
			
			
			0.361
			
			
			1,896,000
			
		


			TIONG SENG HOLDINGS
			
			
			45,962,384
			
			
			200,000
			
			
			$27,968
			
			
			0.140
			
			
			1,062,400
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS
			
			
			97,226,160
			
			
			60,000
			
			
			$20,442
			
			
			0.341
			
			
			1,541,500
			
		


			LY CORPORATION
			
			
			48,914,420
			
			
			70,000
			
			
			$13,307
			
			
			0.190
			
			
			245,000
			
		


			INTRACO
			
			
			10,292,587
			
			
			21,000
			
			
			$4,788
			
			
			0.228
			
			
			99,000
			
		


			CHOO CHIANG HOLDINGS
			
			
			20,800,000
			
			
			10,000
			
			
			$2,178
			
			
			0.218
			
			
			71,300
			
		


			Total
			
			
			 
			
			
			37,611,300
			
			
			$22,243,226
			
			
			 
			
			
			 
			
		

Source: SGX (Data as of 30 October 2020)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they can be converted into treasury shares, which means they are no longer categorised as shares outstanding. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. Buybacks can pick up amidst market declines that are driven by broader moves on international macroeconomic developments.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.



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