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

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<ul>
<li>
In April 2019, 19 primary-listed stocks on SGX repurchased close to 30 million shares with a total consideration of S$36 million. This was down from S$54 million in April 2019 and down from S$117 million in April 2018. 
	 </li>
	<li>
Six stocks commenced new buyback mandates in the month of April 2019: Keppel REIT, Global Investments, Tuan Sing Holdings,  Ecowise Holdings, Kim Heng Offshore &amp; Marine Holdings and Axcelasia Inc. 
	 </li>
	<li>
The April 2019 buyback consideration was led by OCBC, which contributed two-thirds of the total consideration. As of 17 April, OCBC had bought back 0.38% of its shares on the mandate. OCBC is scheduled to report 1Q19 financials before the market open on 10 May. 
	 </li>
</ul>
Total share buyback consideration for the month of April 2019 totaled S$35.5 million. There were 19 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 29.6 million shares or units. The S$35.5 million in buyback consideration was one-third lower than the buyback consideration of S$53.5 million filed in March 2019 (click <a href="https://www2.sgx.com/research-education/market-updates/20190402-march-buy-back-consideration-led-ocbc-hong-fok-st-engg">here</a> for more).

Last month, the Straits Times Index (“STI”) generated the strongest gains of Asia Pacific’s financial centres moving from 3,212.88 at the end of March to 3,400.2 at the end of April. Dividends boost the total return of the STI by 0.2%, bringing the STI total return for the month to 6.1%. 

This compared to an average total returns in April of 3.2% for the Nikkei 225 Index, Hang Seng Index and S&amp;P/ASX 200 Index. The STI was propelled by the Bank Sector, whilst beyond the STI, China environment plays buoyed Singapore’s Utilities Sector.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-05/monthly%20share%20bb.PNG" alt="Monthly Share Buyback Consideration (S$ Million) &amp; STI Month-End Levels">
 </figure>
 <div class="content-caption">Monthly Share Buyback Consideration (S$ Million) &amp; STI Month-End Levels</div>
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.

Six New Mandates Commenced in April 2019 

<ul>
<li>
Keppel REIT – commenced new mandate on 25 April, after Keppel REIT Management bought back 1.004% of Keppel REIT’s issued units on the preceding mandate. 
	 </li>
	<li>
Global Investments – completed the preceding mandate on 24 April, buying back 2.1473% of its issued shares excluding treasury shares as at the date of that share buyback resolution. Global Investments subsequently began a new mandate on 25 April. 
	 </li>
	<li>
Tuan Sing Holdings – commenced a new mandate on 29 April, after buying back 0.4309% of its issued shares excluding treasury shares as at the date of that share buyback resolution. 
	 </li>
	<li>
Ecowise Holdings - commenced a new mandate on 26 April after buying back just 500,000 shares in one transaction in the preceding mandate. 
	 </li>
	<li>
Kim Heng Offshore &amp; Marine Holdings – commenced a new mandate on 29 April after buying back 167,700 shares in two transactions in the preceding mandate. 
	 </li>
	<li>
Axcelasia Inc – commenced its current mandate with one buyback of 9,700 shares on 1 April.</li>
</ul>
The table below summarises the buyback considerations in April 2019. 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>
			Company /Trust
			</td>
			<td>
			Max of Number of Shares/units Authorised for Purchase in Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in April 2019
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in April 2019
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date*
			</td>
		</tr>
<tr>
<td>
			OVERSEA-CHINESE BANKING CORPORATION
			</td>
			<td>
			209,128,622
			</td>
			<td>
			2,200,000
			</td>
			<td>
			25,559,848
			</td>
			<td>
			15,825,000
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT MANAGEMENT
			</td>
			<td>
			170,210,715
			</td>
			<td>
			2,190,700
			</td>
			<td>
			2,672,678
			</td>
			<td>
			2,190,700
			</td>
		</tr>
<tr>
<td>
			HONG FOK CORPORATION
			</td>
			<td>
			87,061,124
			</td>
			<td>
			2,442,400
			</td>
			<td>
			2,183,837
			</td>
			<td>
			9,140,900
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			14,688,300
			</td>
			<td>
			1,967,884
			</td>
			<td>
			1,530,000
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			86,408,798
			</td>
			<td>
			2,239,100
			</td>
			<td>
			1,109,890
			</td>
			<td>
			37,978,500
			</td>
		</tr>
<tr>
<td>
			BEST WORLD INTERNATIONAL
			</td>
			<td>
			55,032,011
			</td>
			<td>
			420,000
			</td>
			<td>
			805,506
			</td>
			<td>
			1,345,000
			</td>
		</tr>
<tr>
<td>
			KIMLY
			</td>
			<td>
			115,489,763
			</td>
			<td>
			1,620,600
			</td>
			<td>
			382,406
			</td>
			<td>
			2,050,700
			</td>
		</tr>
<tr>
<td>
			THE STRAITS TRADING COMPANY
			</td>
			<td>
			40,767,817
			</td>
			<td>
			89,100
			</td>
			<td>
			201,335
			</td>
			<td>
			417,600
			</td>
		</tr>
<tr>
<td>
			TREK 2000 INTERNATIONAL
			</td>
			<td>
			32,288,792
			</td>
			<td>
			1,211,700
			</td>
			<td>
			117,162
			</td>
			<td>
			2,867,900
			</td>
		</tr>
<tr>
<td>
			HC SURGICAL SPECIALISTS
			</td>
			<td>
			14,917,573
			</td>
			<td>
			190,000
			</td>
			<td>
			112,365
			</td>
			<td>
			370,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			43,701,979
			</td>
			<td>
			364,800
			</td>
			<td>
			106,130
			</td>
			<td>
			11,752,400
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,500,000
			</td>
			<td>
			500,000
			</td>
			<td>
			100,417
			</td>
			<td>
			2,691,400
			</td>
		</tr>
<tr>
<td>
			TUAN SING HOLDINGS
			</td>
			<td>
			118,620,496
			</td>
			<td>
			200,000
			</td>
			<td>
			78,954
			</td>
			<td>
			200,000
			</td>
		</tr>
<tr>
<td>
			GLOBAL PALM RESOURCES HOLDINGS
			</td>
			<td>
			19,628,200
			</td>
			<td>
			248,500
			</td>
			<td>
			52,595
			</td>
			<td>
			278,500
			</td>
		</tr>
<tr>
<td>
			GRP
			</td>
			<td>
			19,370,161
			</td>
			<td>
			308,700
			</td>
			<td>
			40,487
			</td>
			<td>
			310,700
			</td>
		</tr>
<tr>
<td>
			ECOWISE HOLDINGS
			</td>
			<td>
			95,748,302
			</td>
			<td>
			496,900
			</td>
			<td>
			14,001
			</td>
			<td>
			496,900
			</td>
		</tr>
<tr>
<td>
			KIM HENG OFFSHORE &amp; MARINE HOLDINGS
			</td>
			<td>
			70,883,230
			</td>
			<td>
			150,000
			</td>
			<td>
			9,947
			</td>
			<td>
			150,000
			</td>
		</tr>
<tr>
<td>
			ASPEN (GROUP) HOLDINGS
			</td>
			<td>
			96,361,790
			</td>
			<td>
			60,000
			</td>
			<td>
			8,821
			</td>
			<td>
			82,600
			</td>
		</tr>
<tr>
<td>
			AXCELASIA INC.
			</td>
			<td>
			16,032,000
			</td>
			<td>
			9,700
			</td>
			<td>
			894
			</td>
			<td>
			9,700
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			29,630,500 
			</td>
			<td>
			35,525,155 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.  

Source: SGX My Gateway (Data as of 30 April 2019)

 

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 will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

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>).
</body></html>





In April 2019, 19 primary-listed stocks on SGX repurchased close to 30 million shares with a total consideration of S$36 million. This was down from S$54 million in April 2019 and down from S$117 million in April 2018. 
	 
	
Six stocks commenced new buyback mandates in the month of April 2019: Keppel REIT, Global Investments, Tuan Sing Holdings,  Ecowise Holdings, Kim Heng Offshore &amp; Marine Holdings and Axcelasia Inc. 
	 
	
The April 2019 buyback consideration was led by OCBC, which contributed two-thirds of the total consideration. As of 17 April, OCBC had bought back 0.38% of its shares on the mandate. OCBC is scheduled to report 1Q19 financials before the market open on 10 May. 
	 

Total share buyback consideration for the month of April 2019 totaled S$35.5 million. There were 19 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 29.6 million shares or units. The S$35.5 million in buyback consideration was one-third lower than the buyback consideration of S$53.5 million filed in March 2019 (click here for more).

Last month, the Straits Times Index (“STI”) generated the strongest gains of Asia Pacific’s financial centres moving from 3,212.88 at the end of March to 3,400.2 at the end of April. Dividends boost the total return of the STI by 0.2%, bringing the STI total return for the month to 6.1%. 

This compared to an average total returns in April of 3.2% for the Nikkei 225 Index, Hang Seng Index and S&amp;P/ASX 200 Index. The STI was propelled by the Bank Sector, whilst beyond the STI, China environment plays buoyed Singapore’s Utilities Sector.

      
    
    Monthly Share Buyback Consideration (S$ Million) &amp; STI Month-End Levels
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.

Six New Mandates Commenced in April 2019 



Keppel REIT – commenced new mandate on 25 April, after Keppel REIT Management bought back 1.004% of Keppel REIT’s issued units on the preceding mandate. 
	 
	
Global Investments – completed the preceding mandate on 24 April, buying back 2.1473% of its issued shares excluding treasury shares as at the date of that share buyback resolution. Global Investments subsequently began a new mandate on 25 April.  
	 
	
Tuan Sing Holdings – commenced a new mandate on 29 April, after buying back 0.4309% of its issued shares excluding treasury shares as at the date of that share buyback resolution. 
	 
	
Ecowise Holdings - commenced a new mandate on 26 April after buying back just 500,000 shares in one transaction in the preceding mandate. 
	 
	
Kim Heng Offshore &amp; Marine Holdings – commenced a new mandate on 29 April after buying back 167,700 shares in two transactions in the preceding mandate. 
	 
	
Axcelasia Inc – commenced its current mandate with one buyback of 9,700 shares on 1 April.

The table below summarises the buyback considerations in April 2019. 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.




			Company /Trust
			
			
			Max of Number of Shares/units Authorised for Purchase in Mandate
			
			
			Total Number of Shares/units Purchased in April 2019
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in April 2019
			
			
			Cumulative Number of Shares/units purchased in Mandate to date*
			
		


			OVERSEA-CHINESE BANKING CORPORATION
			
			
			209,128,622
			
			
			2,200,000
			
			
			25,559,848
			
			
			15,825,000
			
		


			KEPPEL REIT MANAGEMENT
			
			
			170,210,715
			
			
			2,190,700
			
			
			2,672,678
			
			
			2,190,700
			
		


			HONG FOK CORPORATION
			
			
			87,061,124
			
			
			2,442,400
			
			
			2,183,837
			
			
			9,140,900
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			14,688,300
			
			
			1,967,884
			
			
			1,530,000
			
		


			STAMFORD LAND CORPORATION
			
			
			86,408,798
			
			
			2,239,100
			
			
			1,109,890
			
			
			37,978,500
			
		


			BEST WORLD INTERNATIONAL
			
			
			55,032,011
			
			
			420,000
			
			
			805,506
			
			
			1,345,000
			
		


			KIMLY
			
			
			115,489,763
			
			
			1,620,600
			
			
			382,406
			
			
			2,050,700
			
		


			THE STRAITS TRADING COMPANY
			
			
			40,767,817
			
			
			89,100
			
			
			201,335
			
			
			417,600
			
		


			TREK 2000 INTERNATIONAL
			
			
			32,288,792
			
			
			1,211,700
			
			
			117,162
			
			
			2,867,900
			
		


			HC SURGICAL SPECIALISTS
			
			
			14,917,573
			
			
			190,000
			
			
			112,365
			
			
			370,000
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			43,701,979
			
			
			364,800
			
			
			106,130
			
			
			11,752,400
			
		


			EUROSPORTS GLOBAL
			
			
			26,500,000
			
			
			500,000
			
			
			100,417
			
			
			2,691,400
			
		


			TUAN SING HOLDINGS
			
			
			118,620,496
			
			
			200,000
			
			
			78,954
			
			
			200,000
			
		


			GLOBAL PALM RESOURCES HOLDINGS
			
			
			19,628,200
			
			
			248,500
			
			
			52,595
			
			
			278,500
			
		


			GRP
			
			
			19,370,161
			
			
			308,700
			
			
			40,487
			
			
			310,700
			
		


			ECOWISE HOLDINGS
			
			
			95,748,302
			
			
			496,900
			
			
			14,001
			
			
			496,900
			
		


			KIM HENG OFFSHORE &amp; MARINE HOLDINGS
			
			
			70,883,230
			
			
			150,000
			
			
			9,947
			
			
			150,000
			
		


			ASPEN (GROUP) HOLDINGS
			
			
			96,361,790
			
			
			60,000
			
			
			8,821
			
			
			82,600
			
		


			AXCELASIA INC.
			
			
			16,032,000
			
			
			9,700
			
			
			894
			
			
			9,700
			
		


			Total
			
			
			 
			
			
			29,630,500 
			
			
			35,525,155 
			
			
			 
			
		

*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.  

Source: SGX My Gateway (Data as of 30 April 2019)

 

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 will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

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).



April Buyback Consideration Led by OCBC, Keppel REIT & Hong Fok  