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 Jan 2019, the STI gained 4% and 21 SGX primary-listed stocks repurchased 30 million shares with total consideration of S$26 million. This was down month-on-month from S$78 million in Dec 2018 and down year-on-year from S$54 million in Jan 2018. 
	 </li>
	<li>
Three stocks commenced new buyback mandates in Jan - Global Investments, ISEC Healthcare and Silverlake Axis. The latter’s mandate was renewed on 26 Oct 2018, with close to 7% of its shares bought back on the previous mandate. 
	 </li>
	<li>The Jan buyback consideration was led by OCBC, Keppel REIT Management, Silverlake Axis, Venture Corporation and Singapore Post which accounted for more than four-fifths of the S$26 million.</li>
</ul>
 

Total share buyback consideration for the first month of the 2019 calendar year totaled S$26.4 million. There were 21 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 30.2 million in shares/units. The S$26.4 million in buyback consideration was just over one-third of the buyback consideration of S$78.0 million filed in December 2018 (click <a href="http://www.sgx.com/wps/wcm/connect/sgx_en/home/newsflash/mu_01112018_1">here</a> for more).

During the month of January, the Straits Times Index (“STI”) gained 4.0%, from to 3,068.76 at the end of 2018 to 3,190.17. As highlighted within the FTSE ST Monthly Report (click <a href="https://www.ftse.com/Analytics/Factsheets/Home/DownloadSingleIssue?issueName=STIMR&amp;IsManual=True">here</a>) Singapore’s Mid Cap stocks were the best performers in January within the FTSE ST Index Series, gaining 7.0% over the month.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-02/Capture.PNG" alt="Monthly Share Buyback Consideration (S$ Million) &amp; STI Month-End Levels">
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 <div class="content-caption">Monthly Share Buyback Consideration (S$ Million) &amp; STI Month-End Levels</div>
Three New Mandates Commenced in January 2019 

<ul>
<li>
Silverlake Axis share buyback mandate was renewed on 26 Oct 2018, with 6.9% of its shares bought back on the previous mandate. In January, the company commenced buybacks under the current mandate and bought back its shares five times, with a total S$2.9 million in consideration. Following on from the share buyback conducted on 14 Jan, the reduction in the number of shares issued (and treasury shares) saw NTAsian Discovery Master Fund’s direct interest in the listed company rise back above the substantial shareholder threshold, from 4.9995 per cent to 5.0023 per cent. 
	 </li>
	<li>On 7 January, Global Investments transferred its domicile from Bermuda to Singapore and it is now registered in Singapore. Global Investment’s focus is to identify opportunities in a wide range of asset classes in different sectors and invest in assets that will generate steady income and potential appreciation in capital so as to deliver regular dividends and achieve capital growth. These were the first buybacks filed for Global Investments on current records which date back to 2012. The company listed on SGX in 2006. 
	 </li>
	<li>
ISEC Healthcare which listed on Catalist in October 2014 bought back 386,400 of its shares over seven sessions in January. The company’s current mandate began on 25 April 2018 and these were the first buybacks filed since the company listed. ISEC Healthcare is a comprehensive medical eye care service provider, with ambulatory surgical centres in Malaysia (Kuala Lumpur, Penang, Malacca &amp; Sibu). The company also provides specialist medical ophthalmology services to the Lee Hung Ming Eye Centre in Gleneagles Hospital in Singapore, in addition to General Health Services through general family medicine and aesthetics services.</li>
</ul>
The table below summarises the buyback considerations in January 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>
			Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in Jan 2018
			</td>
			<td>
			Total Buyback Consideration in Jan 2019 (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>
			OVERSEA-CHINESE BANKING CORPORATION
			</td>
			<td>
			209,128,622
			</td>
			<td>
			1,200,000
			</td>
			<td>
			13,893,919
			</td>
			<td>
			10,225,000
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT MANAGEMENT
			</td>
			<td>
			169,473,366
			</td>
			<td>
			2,500,000
			</td>
			<td>
			2,945,963
			</td>
			<td>
			30,777,800
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS 
			</td>
			<td>
			264,925,273
			</td>
			<td>
			7,150,000
			</td>
			<td>
			2,942,375
			</td>
			<td>
			7,150,000
			</td>
		</tr>
<tr>
<td>
			VENTURE CORPORATION
			</td>
			<td>
			28,743,057
			</td>
			<td>
			106,000
			</td>
			<td>
			1,581,002
			</td>
			<td>
			1,120,000
			</td>
		</tr>
<tr>
<td>
			SINGAPORE POST
			</td>
			<td>
			226,352,024
			</td>
			<td>
			1,590,000
			</td>
			<td>
			1,493,115
			</td>
			<td>
			11,130,000
			</td>
		</tr>
<tr>
<td>
			SUNPOWER GROUP
			</td>
			<td>
			73,914,214
			</td>
			<td>
			2,121,000
			</td>
			<td>
			803,058
			</td>
			<td>
			2,542,000
			</td>
		</tr>
<tr>
<td>
			BUMITAMA AGRI
			</td>
			<td>
			173,982,394
			</td>
			<td>
			912,100
			</td>
			<td>
			641,963
			</td>
			<td>
			1,367,200
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			43,701,979
			</td>
			<td>
			1,300,100
			</td>
			<td>
			377,763
			</td>
			<td>
			7,996,800
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS 
			</td>
			<td>
			169,629,503
			</td>
			<td>
			2,511,300
			</td>
			<td>
			309,809
			</td>
			<td>
			2,511,300
			</td>
		</tr>
<tr>
<td>
			HI-P INTERNATIONAL
			</td>
			<td>
			80,848,740
			</td>
			<td>
			263,300
			</td>
			<td>
			237,112
			</td>
			<td>
			9,280,800
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			86,408,798
			</td>
			<td>
			376,300
			</td>
			<td>
			184,663
			</td>
			<td>
			33,815,500
			</td>
		</tr>
<tr>
<td>
			SPACKMAN ENTERTAINMENT GROUP
			</td>
			<td>
			69,267,370
			</td>
			<td>
			6,200,000
			</td>
			<td>
			180,358
			</td>
			<td>
			7,950,000
			</td>
		</tr>
<tr>
<td>
			SINGHAIYI GROUP
			</td>
			<td>
			428,511,187
			</td>
			<td>
			1,937,000
			</td>
			<td>
			172,522
			</td>
			<td>
			63,174,900
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			27,014,073
			</td>
			<td>
			200,000
			</td>
			<td>
			166,426
			</td>
			<td>
			1,450,000
			</td>
		</tr>
<tr>
<td>
			PEC
			</td>
			<td>
			25,469,673
			</td>
			<td>
			200,000
			</td>
			<td>
			116,069
			</td>
			<td>
			779,000
			</td>
		</tr>
<tr>
<td>
			ISEC HEALTHCARE 
			</td>
			<td>
			51,709,566
			</td>
			<td>
			386,400
			</td>
			<td>
			105,292
			</td>
			<td>
			386,400
			</td>
		</tr>
<tr>
<td>
			CDW HOLDING
			</td>
			<td>
			22,964,400
			</td>
			<td>
			571,400
			</td>
			<td>
			101,655
			</td>
			<td>
			2,402,000
			</td>
		</tr>
<tr>
<td>
			THE STRAITS TRADING COMPANY
			</td>
			<td>
			40,809,577
			</td>
			<td>
			27,300
			</td>
			<td>
			55,849
			</td>
			<td>
			326,500
			</td>
		</tr>
<tr>
<td>
			TREK 2000 INTERNATIONAL
			</td>
			<td>
			32,288,792
			</td>
			<td>
			528,600
			</td>
			<td>
			54,572
			</td>
			<td>
			1,477,200
			</td>
		</tr>
<tr>
<td>
			PACC OFFSHORE SERVICES HOLDINGS
			</td>
			<td>
			181,364,040
			</td>
			<td>
			140,000
			</td>
			<td>
			26,395
			</td>
			<td>
			1,140,000
			</td>
		</tr>
<tr>
<td>
			GP INDUSTRIES
			</td>
			<td>
			48,446,918
			</td>
			<td>
			5,400
			</td>
			<td>
			3,284
			</td>
			<td>
			422,500
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			30,226,200
			</td>
			<td>
			26,393,162
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX (Data as of 31 January 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>).
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In Jan 2019, the STI gained 4% and 21 SGX primary-listed stocks repurchased 30 million shares with total consideration of S$26 million. This was down month-on-month from S$78 million in Dec 2018 and down year-on-year from S$54 million in Jan 2018. 
	 
	
Three stocks commenced new buyback mandates in Jan - Global Investments, ISEC Healthcare and Silverlake Axis. The latter’s mandate was renewed on 26 Oct 2018, with close to 7% of its shares bought back on the previous mandate.  
	 
	The Jan buyback consideration was led by OCBC, Keppel REIT Management, Silverlake Axis, Venture Corporation and Singapore Post which accounted for more than four-fifths of the S$26 million.

 

Total share buyback consideration for the first month of the 2019 calendar year totaled S$26.4 million. There were 21 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 30.2 million in shares/units. The S$26.4 million in buyback consideration was just over one-third of the buyback consideration of S$78.0 million filed in December 2018 (click here for more).

During the month of January, the Straits Times Index (“STI”) gained 4.0%, from to 3,068.76 at the end of 2018 to 3,190.17. As highlighted within the FTSE ST Monthly Report (click here) Singapore’s Mid Cap stocks were the best performers in January within the FTSE ST Index Series, gaining 7.0% over the month.

      
    
    Monthly Share Buyback Consideration (S$ Million) &amp; STI Month-End Levels
Three New Mandates Commenced in January 2019 



Silverlake Axis share buyback mandate was renewed on 26 Oct 2018, with 6.9% of its shares bought back on the previous mandate. In January, the company commenced buybacks under the current mandate and bought back its shares five times, with a total S$2.9 million in consideration. Following on from the share buyback conducted on 14 Jan, the reduction in the number of shares issued (and treasury shares) saw NTAsian Discovery Master Fund’s direct interest in the listed company rise back above the substantial shareholder threshold, from 4.9995 per cent to 5.0023 per cent. 
	 
	On 7 January, Global Investments transferred its domicile from Bermuda to Singapore and it is now registered in Singapore. Global Investment’s focus is to identify opportunities in a wide range of asset classes in different sectors and invest in assets that will generate steady income and potential appreciation in capital so as to deliver regular dividends and achieve capital growth. These were the first buybacks filed for Global Investments on current records which date back to 2012. The company listed on SGX in 2006. 
	 
	
ISEC Healthcare which listed on Catalist in October 2014 bought back 386,400 of its shares over seven sessions in January. The company’s current mandate began on 25 April 2018 and these were the first buybacks filed since the company listed. ISEC Healthcare is a comprehensive medical eye care service provider, with ambulatory surgical centres in Malaysia (Kuala Lumpur, Penang, Malacca &amp; Sibu). The company also provides specialist medical ophthalmology services to the Lee Hung Ming Eye Centre in Gleneagles Hospital in Singapore, in addition to General Health Services through general family medicine and aesthetics services.

The table below summarises the buyback considerations in January 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
			
			
			Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Total Number of Shares/units Purchased in Jan 2018
			
			
			Total Buyback Consideration in Jan 2019 (including stamp duties, clearing changes etc.) paid or payable for the shares $
			
			
			Cumulative Number of Shares/units purchased in Mandate to date*
			
		


			OVERSEA-CHINESE BANKING CORPORATION
			
			
			209,128,622
			
			
			1,200,000
			
			
			13,893,919
			
			
			10,225,000
			
		


			KEPPEL REIT MANAGEMENT
			
			
			169,473,366
			
			
			2,500,000
			
			
			2,945,963
			
			
			30,777,800
			
		


			SILVERLAKE AXIS 
			
			
			264,925,273
			
			
			7,150,000
			
			
			2,942,375
			
			
			7,150,000
			
		


			VENTURE CORPORATION
			
			
			28,743,057
			
			
			106,000
			
			
			1,581,002
			
			
			1,120,000
			
		


			SINGAPORE POST
			
			
			226,352,024
			
			
			1,590,000
			
			
			1,493,115
			
			
			11,130,000
			
		


			SUNPOWER GROUP
			
			
			73,914,214
			
			
			2,121,000
			
			
			803,058
			
			
			2,542,000
			
		


			BUMITAMA AGRI
			
			
			173,982,394
			
			
			912,100
			
			
			641,963
			
			
			1,367,200
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			43,701,979
			
			
			1,300,100
			
			
			377,763
			
			
			7,996,800
			
		


			GLOBAL INVESTMENTS 
			
			
			169,629,503
			
			
			2,511,300
			
			
			309,809
			
			
			2,511,300
			
		


			HI-P INTERNATIONAL
			
			
			80,848,740
			
			
			263,300
			
			
			237,112
			
			
			9,280,800
			
		


			STAMFORD LAND CORPORATION
			
			
			86,408,798
			
			
			376,300
			
			
			184,663
			
			
			33,815,500
			
		


			SPACKMAN ENTERTAINMENT GROUP
			
			
			69,267,370
			
			
			6,200,000
			
			
			180,358
			
			
			7,950,000
			
		


			SINGHAIYI GROUP
			
			
			428,511,187
			
			
			1,937,000
			
			
			172,522
			
			
			63,174,900
			
		


			AEM HOLDINGS
			
			
			27,014,073
			
			
			200,000
			
			
			166,426
			
			
			1,450,000
			
		


			PEC
			
			
			25,469,673
			
			
			200,000
			
			
			116,069
			
			
			779,000
			
		


			ISEC HEALTHCARE 
			
			
			51,709,566
			
			
			386,400
			
			
			105,292
			
			
			386,400
			
		


			CDW HOLDING
			
			
			22,964,400
			
			
			571,400
			
			
			101,655
			
			
			2,402,000
			
		


			THE STRAITS TRADING COMPANY
			
			
			40,809,577
			
			
			27,300
			
			
			55,849
			
			
			326,500
			
		


			TREK 2000 INTERNATIONAL
			
			
			32,288,792
			
			
			528,600
			
			
			54,572
			
			
			1,477,200
			
		


			PACC OFFSHORE SERVICES HOLDINGS
			
			
			181,364,040
			
			
			140,000
			
			
			26,395
			
			
			1,140,000
			
		


			GP INDUSTRIES
			
			
			48,446,918
			
			
			5,400
			
			
			3,284
			
			
			422,500
			
		


			Total
			
			
			 
			
			
			30,226,200
			
			
			26,393,162
			
			
			 
			
		

Source: SGX (Data as of 31 January 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).



Monthly Share Buybacks Decelerated on 4% STI Rebound