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, the STI gained 4%, bringing the STI’s total return for the first ten months of 2019 to 9%. The buyback consideration of primary-listed SGX stocks over the first 10 months of 2019 was just one-third of the consideration recorded over the same period in 2018.  </li>
	<li>For the month of October, 21 primary-listed SGX stocks repurchased more than 50 million shares with a total consideration of S$15 million. This was similar to the S$15 million in September and down from S$60 million in October 2018.</li>
</ul>
<ul>
<li>
October buyback consideration was led by Keppel REIT, Stamford Land Corporation, Yangzijiang Shipbuilding, Singapore Shipping Corporation and Global Investments. Four stocks commenced new mandates. 
	 </li>
</ul>
Total share buyback consideration for month of October 2019 totaled S$15.2 million, similar to the S$14.9 million consideration reported for September 2019. The month’s buyback was also down from S$59.9 million in October 2018. There were 21 SGX primary-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 54.9 million shares. Note the tally does not include secondary-listed stocks such as Jardine Matheson Holdings.

For the first 10 months of 2019, the total buyback consideration of SGX primary-listed stocks amounted to approximately S$470 million, which was approximately one-third of the S$1.34 billion recorded for the first 10 months of 2018. The S$470 million in consideration for the last 10 months was more on-par with the S$344 million recorded for the first 10 months of 2017.

Last month, the Straits Times Index (“STI”) rebounded by 4%, moving from 3119.99 at the end of September to 3,229.88 at the end of October. This brought the STI’s total return for the ten months of 2019 to 9%. As discussed <a href="https://www2.sgx.com/research-education/market-updates/20191104-equities-bucked-october-effect-sti-posted-4-rebound">here</a>, the STI was amongst Asia Pacific’s strongest benchmarks in October.
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Four Stocks Commenced New Mandates Commenced in October 2019 
 

The table below summarises the buyback considerations in October 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. 
 

Keppel REIT led the consideration tally, and as of October 31, Keppel REIT Management had bought back a total of 27,737,600 units of Keppel REIT representing 0.8148 per cent of its issued units as of the April 23 start date for the current mandate. The previous year’s mandate saw Keppel REIT Management buy back 1.004 per cent of the units of Keppel REIT. 
 

The four stocks that commenced new mandates included Shopper360, Singapore Medical Group, Intraco and MDR.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stocks
			</td>
			<td>
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Oct 2019 Total Number of Shares/units Purchased
			</td>
			<td>
			Oct 2019 Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date*
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT MANAGEMENT
			</td>
			<td>
			170,210,715
			</td>
			<td>
			4,350,000
			</td>
			<td>
			$5,456,915
			</td>
			<td>
			27,737,600
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			81,973,408
			</td>
			<td>
			4,844,000
			</td>
			<td>
			$2,413,723
			</td>
			<td>
			24,617,600
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			</td>
			<td>
			394,576,520
			</td>
			<td>
			2,000,000
			</td>
			<td>
			$1,887,320
			</td>
			<td>
			27,000,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			42,417,689
			</td>
			<td>
			5,363,500
			</td>
			<td>
			$1,585,563
			</td>
			<td>
			12,728,300
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			8,911,100
			</td>
			<td>
			$1,240,173
			</td>
			<td>
			57,658,300
			</td>
		</tr>
<tr>
<td>
			GRP
			</td>
			<td>
			19,370,161
			</td>
			<td>
			3,949,600
			</td>
			<td>
			$772,494
			</td>
			<td>
			5,806,800
			</td>
		</tr>
<tr>
<td>
			DUTY FREE INTERNATIONAL
			</td>
			<td>
			120,550,039
			</td>
			<td>
			3,959,200
			</td>
			<td>
			$634,882
			</td>
			<td>
			7,301,300
			</td>
		</tr>
<tr>
<td>
			SHOPPER360
			</td>
			<td>
			11,440,000
			</td>
			<td>
			2,625,500
			</td>
			<td>
			$289,803
			</td>
			<td>
			2,625,500
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			30,189,290
			</td>
			<td>
			1,210,600
			</td>
			<td>
			$188,324
			</td>
			<td>
			2,990,900
			</td>
		</tr>
<tr>
<td>
			CDW HOLDING
			</td>
			<td>
			22,724,200
			</td>
			<td>
			614,400
			</td>
			<td>
			$117,133
			</td>
			<td>
			3,996,900
			</td>
		</tr>
<tr>
<td>
			BREADTALK GROUP
			</td>
			<td>
			56,376,234
			</td>
			<td>
			200,000
			</td>
			<td>
			$111,345
			</td>
			<td>
			695,000
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,426,699
			</td>
			<td>
			200,000
			</td>
			<td>
			$103,320
			</td>
			<td>
			400,000
			</td>
		</tr>
<tr>
<td>
			HEALTHWAY MEDICAL CORPORATION
			</td>
			<td>
			226,439,605
			</td>
			<td>
			3,499,100
			</td>
			<td>
			$89,989
			</td>
			<td>
			17,565,800
			</td>
		</tr>
<tr>
<td>
			STARBURST HOLDINGS
			</td>
			<td>
			12,114,546
			</td>
			<td>
			215,000
			</td>
			<td>
			$81,702
			</td>
			<td>
			381,600
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,220,160
			</td>
			<td>
			379,000
			</td>
			<td>
			$73,926
			</td>
			<td>
			609,000
			</td>
		</tr>
<tr>
<td>
			ANCHUN INTERNATIONAL HOLDINGS
			</td>
			<td>
			5,008,260
			</td>
			<td>
			222,000
			</td>
			<td>
			$51,941
			</td>
			<td>
			224,700
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP
			</td>
			<td>
			48,072,163
			</td>
			<td>
			139,000
			</td>
			<td>
			$42,004
			</td>
			<td>
			139,000
			</td>
		</tr>
<tr>
<td>
			HRNETGROUP
			</td>
			<td>
			100,581,957
			</td>
			<td>
			70,000
			</td>
			<td>
			$41,124
			</td>
			<td>
			572,000
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION
			</td>
			<td>
			86,411,428
			</td>
			<td>
			20,500
			</td>
			<td>
			$15,397
			</td>
			<td>
			121,300
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,372,588
			</td>
			<td>
			52,200
			</td>
			<td>
			$12,326
			</td>
			<td>
			52,200
			</td>
		</tr>
<tr>
<td>
			MDR
			</td>
			<td>
			6,496,063,939
			</td>
			<td>
			12,029,300
			</td>
			<td>
			$12,047
			</td>
			<td>
			12,029,300
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			54,854,000
			</td>
			<td>
			$15,221,450
			</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 31 October 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. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. 
 

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>). 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, the STI gained 4%, bringing the STI’s total return for the first ten months of 2019 to 9%. The buyback consideration of primary-listed SGX stocks over the first 10 months of 2019 was just one-third of the consideration recorded over the same period in 2018.  
	For the month of October, 21 primary-listed SGX stocks repurchased more than 50 million shares with a total consideration of S$15 million. This was similar to the S$15 million in September and down from S$60 million in October 2018.



October buyback consideration was led by Keppel REIT, Stamford Land Corporation, Yangzijiang Shipbuilding, Singapore Shipping Corporation and Global Investments. Four stocks commenced new mandates.  
	 

Total share buyback consideration for month of October 2019 totaled S$15.2 million, similar to the S$14.9 million consideration reported for September 2019. The month’s buyback was also down from S$59.9 million in October 2018. There were 21 SGX primary-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 54.9 million shares. Note the tally does not include secondary-listed stocks such as Jardine Matheson Holdings.

For the first 10 months of 2019, the total buyback consideration of SGX primary-listed stocks amounted to approximately S$470 million, which was approximately one-third of the S$1.34 billion recorded for the first 10 months of 2018. The S$470 million in consideration for the last 10 months was more on-par with the S$344 million recorded for the first 10 months of 2017.

Last month, the Straits Times Index (“STI”) rebounded by 4%, moving from 3119.99 at the end of September to 3,229.88 at the end of October. This brought the STI’s total return for the ten months of 2019 to 9%. As discussed here, the STI was amongst Asia Pacific’s strongest benchmarks in October.



      
    
    Buyback Consideration_0


Four Stocks Commenced New Mandates Commenced in October 2019 
 

The table below summarises the buyback considerations in October 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. 
 

Keppel REIT led the consideration tally, and as of October 31, Keppel REIT Management had bought back a total of 27,737,600 units of Keppel REIT representing 0.8148 per cent of its issued units as of the April 23 start date for the current mandate. The previous year’s mandate saw Keppel REIT Management buy back 1.004 per cent of the units of Keppel REIT. 
 

The four stocks that commenced new mandates included Shopper360, Singapore Medical Group, Intraco and MDR.




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


			KEPPEL REIT MANAGEMENT
			
			
			170,210,715
			
			
			4,350,000
			
			
			$5,456,915
			
			
			27,737,600
			
		


			STAMFORD LAND CORPORATION
			
			
			81,973,408
			
			
			4,844,000
			
			
			$2,413,723
			
			
			24,617,600
			
		


			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			
			
			394,576,520
			
			
			2,000,000
			
			
			$1,887,320
			
			
			27,000,000
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			42,417,689
			
			
			5,363,500
			
			
			$1,585,563
			
			
			12,728,300
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			8,911,100
			
			
			$1,240,173
			
			
			57,658,300
			
		


			GRP
			
			
			19,370,161
			
			
			3,949,600
			
			
			$772,494
			
			
			5,806,800
			
		


			DUTY FREE INTERNATIONAL
			
			
			120,550,039
			
			
			3,959,200
			
			
			$634,882
			
			
			7,301,300
			
		


			SHOPPER360
			
			
			11,440,000
			
			
			2,625,500
			
			
			$289,803
			
			
			2,625,500
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			30,189,290
			
			
			1,210,600
			
			
			$188,324
			
			
			2,990,900
			
		


			CDW HOLDING
			
			
			22,724,200
			
			
			614,400
			
			
			$117,133
			
			
			3,996,900
			
		


			BREADTALK GROUP
			
			
			56,376,234
			
			
			200,000
			
			
			$111,345
			
			
			695,000
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,426,699
			
			
			200,000
			
			
			$103,320
			
			
			400,000
			
		


			HEALTHWAY MEDICAL CORPORATION
			
			
			226,439,605
			
			
			3,499,100
			
			
			$89,989
			
			
			17,565,800
			
		


			STARBURST HOLDINGS
			
			
			12,114,546
			
			
			215,000
			
			
			$81,702
			
			
			381,600
			
		


			EUROSPORTS GLOBAL
			
			
			26,220,160
			
			
			379,000
			
			
			$73,926
			
			
			609,000
			
		


			ANCHUN INTERNATIONAL HOLDINGS
			
			
			5,008,260
			
			
			222,000
			
			
			$51,941
			
			
			224,700
			
		


			SINGAPORE MEDICAL GROUP
			
			
			48,072,163
			
			
			139,000
			
			
			$42,004
			
			
			139,000
			
		


			HRNETGROUP
			
			
			100,581,957
			
			
			70,000
			
			
			$41,124
			
			
			572,000
			
		


			STRACO CORPORATION
			
			
			86,411,428
			
			
			20,500
			
			
			$15,397
			
			
			121,300
			
		


			INTRACO
			
			
			10,372,588
			
			
			52,200
			
			
			$12,326
			
			
			52,200
			
		


			MDR
			
			
			6,496,063,939
			
			
			12,029,300
			
			
			$12,047
			
			
			12,029,300
			
		


			Total
			
			
			 
			
			
			54,854,000
			
			
			$15,221,450
			
			
			 
			
		

*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 31 October 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. Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long term capital management. 
 

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). 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.



Keppel REIT Led Modest Buyback Consideration Tally in October  