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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In the month of Dec 2019, 20 SGX primary-listed stocks bought back 43 million shares for a total consideration of S$70 million. This was up from S$52 million in consideration for Nov 2019, and similar to the S$78 million filed for Dec 2018. 
	 </li>
	<li>
This brought the total buyback consideration for 2019 to S$590 million, with close to 80 primary-listed stocks conducting the buybacks, down from 2018’s comparatively larger SS$1.53 billion in consideration with 100 stocks then conducting buybacks. 
	 </li>
	<li>The 2019 buyback consideration tally was led by OCBC, DBS, Keppel REIT, ST Engineering and Yangzijiang. Buybacks conducted by STI stocks made up two-thirds of the S$590 million total consideration in 2019. </li>
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Total share buyback consideration for month of Dec 2019 totaled S$70.1 million, up from the $52.0 million in consideration reported for Nov 2019 (click <a href="https://www2.sgx.com/research-education/market-updates/20191202-nov-buyback-consideration-reaches-s52m-november">here</a> for more details). The December 2019 buyback consideration was similar to the S$78.0 million reported for December 2018.

During the month of December 2019, the Straits Times Index (“STI”) gained 0.9%. This took the 2019 total return of the Straits Times Index (“STI”) to 9.4%, as highlighted in a recent Market Update (click <a href="https://www2.sgx.com/research-education/market-updates/20200102-sti-clocks-94-total-return-2019">here</a> for more).
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-01/Monthly%20Buybacks.PNG' alt='Monthly Buybacks ' />
 </figure>
 <div class='content-caption'>Monthly Buybacks </div>
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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.

2019 Buyback Consideration Tally at S$590 Million

December buybacks took the total buyback consideration for SGX primary-listed stocks in 2019 to SS$590 million, with close to 80 stocks conducting the buybacks. This meant the 2019 total buyback consideration was close to two-fifths the total buyback consideration in 2018, that totaled S$1.53 billion. As shown in the chart below, the total consideration for 2019 was more similar to the consideration totals in 2016 and 2017.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-01/Share%20Buy%20Backs.PNG' alt='Share Buybacks ' />
 </figure>
 <div class='content-caption'>Share Buybacks </div>
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The 2019 buyback consideration tally was led by Oversea-Chinese Banking Corporation, DBS Group Holdings, Keppel REIT, ST Engineering and Yangzijiang Shipbuilding (Holdings). Buybacks conducted by STI stocks made up two-thirds of the S$590 million total consideration in 2019. By comparison, STI stocks contributed four-fifths of the S$1.53 billion in total buyback consideration for primary-listed stocks in 2018.

The non-STI stocks that are currently actively trading and contributed the highest buyback considerations for 2019 included Keppel REIT, Stamford Land Corporation, Global Investments, Hong Fok Corporation and Olam International.

Dec 2019 Buybacks at S$70 Million

The table below summarises the buyback considerations in December 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>
			Stocks
			</td>
			<td>
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			</td>
			<td>
			Dec 2019 Total Number of Shares/units Purchased
			</td>
			<td>
			Dec 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>
			OVERSEA-CHINESE BANKING CORPORATION
			</td>
			<td>
			212,257,935
			</td>
			<td>
			2,400,000
			</td>
			<td>
			$26,013,511
			</td>
			<td>
			10,330,000
			</td>
		</tr>
<tr>
<td>
			DBS GROUP HOLDINGS
			</td>
			<td>
			51,165,438
			</td>
			<td>
			500,000
			</td>
			<td>
			$12,460,969
			</td>
			<td>
			4,150,000
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT MANAGEMENT
			</td>
			<td>
			170,210,715
			</td>
			<td>
			10,015,572
			</td>
			<td>
			$12,449,425
			</td>
			<td>
			61,304,972
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,432,801
			</td>
			<td>
			2,828,400
			</td>
			<td>
			$11,331,502
			</td>
			<td>
			6,499,100
			</td>
		</tr>
<tr>
<td>
			SEMBCORP INDUSTRIES
			</td>
			<td>
			35,739,673
			</td>
			<td>
			865,000
			</td>
			<td>
			$1,880,766
			</td>
			<td>
			1,730,100
			</td>
		</tr>
<tr>
<td>
			STAMFORD LAND CORPORATION
			</td>
			<td>
			81,973,408
			</td>
			<td>
			2,300,800
			</td>
			<td>
			$1,152,136
			</td>
			<td>
			28,588,500
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			264,505,273
			</td>
			<td>
			2,635,000
			</td>
			<td>
			$1,100,746
			</td>
			<td>
			8,001,400
			</td>
		</tr>
<tr>
<td>
			STRACO CORPORATION
			</td>
			<td>
			86,411,428
			</td>
			<td>
			1,313,400
			</td>
			<td>
			$888,656
			</td>
			<td>
			1,434,700
			</td>
		</tr>
<tr>
<td>
			HOTEL PROPERTIES
			</td>
			<td>
			26,914,011
			</td>
			<td>
			220,300
			</td>
			<td>
			$841,003
			</td>
			<td>
			220,300
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			3,856,100
			</td>
			<td>
			$550,622
			</td>
			<td>
			65,034,800
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS .
			</td>
			<td>
			98,262,340
			</td>
			<td>
			806,700
			</td>
			<td>
			$408,055
			</td>
			<td>
			6,980,700
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			42,417,689
			</td>
			<td>
			867,000
			</td>
			<td>
			$251,942
			</td>
			<td>
			15,223,700
			</td>
		</tr>
<tr>
<td>
			AEI CORPORATION
			</td>
			<td>
			5,673,215
			</td>
			<td>
			197,600
			</td>
			<td>
			$190,585
			</td>
			<td>
			3,009,200
			</td>
		</tr>
<tr>
<td>
			SPACKMAN ENTERTAINMENT GROUP
			</td>
			<td>
			103,096,560
			</td>
			<td>
			12,000,000
			</td>
			<td>
			$170,528
			</td>
			<td>
			12,000,000
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES
			</td>
			<td>
			30,189,290
			</td>
			<td>
			822,500
			</td>
			<td>
			$124,624
			</td>
			<td>
			4,188,400
			</td>
		</tr>
<tr>
<td>
			ANCHUN INTERNATIONAL HOLDINGS .
			</td>
			<td>
			5,008,260
			</td>
			<td>
			376,900
			</td>
			<td>
			$102,909
			</td>
			<td>
			1,391,700
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,372,588
			</td>
			<td>
			238,500
			</td>
			<td>
			$70,397
			</td>
			<td>
			620,800
			</td>
		</tr>
<tr>
<td>
			KIMLY
			</td>
			<td>
			115,489,763
			</td>
			<td>
			280,000
			</td>
			<td>
			$67,589
			</td>
			<td>
			5,994,700
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,426,699
			</td>
			<td>
			24,500
			</td>
			<td>
			$14,994
			</td>
			<td>
			424,500
			</td>
		</tr>
<tr>
<td>
			CDW HOLDING
			</td>
			<td>
			22,724,200
			</td>
			<td>
			56,000
			</td>
			<td>
			$10,054
			</td>
			<td>
			4,052,900
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			42,604,272
			</td>
			<td>
			$70,081,012
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX (Data as of 31 December 2019)

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 the month of Dec 2019, 20 SGX primary-listed stocks bought back 43 million shares for a total consideration of S$70 million. This was up from S$52 million in consideration for Nov 2019, and similar to the S$78 million filed for Dec 2018. 
	 
	
This brought the total buyback consideration for 2019 to S$590 million, with close to 80 primary-listed stocks conducting the buybacks, down from 2018’s comparatively larger SS$1.53 billion in consideration with 100 stocks then conducting buybacks.  
	 
	The 2019 buyback consideration tally was led by OCBC, DBS, Keppel REIT, ST Engineering and Yangzijiang. Buybacks conducted by STI stocks made up two-thirds of the S$590 million total consideration in 2019. 

 

Total share buyback consideration for month of Dec 2019 totaled S$70.1 million, up from the $52.0 million in consideration reported for Nov 2019 (click here for more details). The December 2019 buyback consideration was similar to the S$78.0 million reported for December 2018.

During the month of December 2019, the Straits Times Index (“STI”) gained 0.9%. This took the 2019 total return of the Straits Times Index (“STI”) to 9.4%, as highlighted in a recent Market Update (click here for more).



      
    
    Monthly Buybacks 


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.

2019 Buyback Consideration Tally at S$590 Million

December buybacks took the total buyback consideration for SGX primary-listed stocks in 2019 to SS$590 million, with close to 80 stocks conducting the buybacks. This meant the 2019 total buyback consideration was close to two-fifths the total buyback consideration in 2018, that totaled S$1.53 billion. As shown in the chart below, the total consideration for 2019 was more similar to the consideration totals in 2016 and 2017.



      
    
    Share Buybacks 


The 2019 buyback consideration tally was led by Oversea-Chinese Banking Corporation, DBS Group Holdings, Keppel REIT, ST Engineering and Yangzijiang Shipbuilding (Holdings). Buybacks conducted by STI stocks made up two-thirds of the S$590 million total consideration in 2019. By comparison, STI stocks contributed four-fifths of the S$1.53 billion in total buyback consideration for primary-listed stocks in 2018.

The non-STI stocks that are currently actively trading and contributed the highest buyback considerations for 2019 included Keppel REIT, Stamford Land Corporation, Global Investments, Hong Fok Corporation and Olam International.

Dec 2019 Buybacks at S$70 Million

The table below summarises the buyback considerations in December 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.




			Stocks
			
			
			Max of Number of Shares/units Authorised for Purchase in Current Mandate
			
			
			Dec 2019 Total Number of Shares/units Purchased
			
			
			Dec 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
			
		


			OVERSEA-CHINESE BANKING CORPORATION
			
			
			212,257,935
			
			
			2,400,000
			
			
			$26,013,511
			
			
			10,330,000
			
		


			DBS GROUP HOLDINGS
			
			
			51,165,438
			
			
			500,000
			
			
			$12,460,969
			
			
			4,150,000
			
		


			KEPPEL REIT MANAGEMENT
			
			
			170,210,715
			
			
			10,015,572
			
			
			$12,449,425
			
			
			61,304,972
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,432,801
			
			
			2,828,400
			
			
			$11,331,502
			
			
			6,499,100
			
		


			SEMBCORP INDUSTRIES
			
			
			35,739,673
			
			
			865,000
			
			
			$1,880,766
			
			
			1,730,100
			
		


			STAMFORD LAND CORPORATION
			
			
			81,973,408
			
			
			2,300,800
			
			
			$1,152,136
			
			
			28,588,500
			
		


			SILVERLAKE AXIS
			
			
			264,505,273
			
			
			2,635,000
			
			
			$1,100,746
			
			
			8,001,400
			
		


			STRACO CORPORATION
			
			
			86,411,428
			
			
			1,313,400
			
			
			$888,656
			
			
			1,434,700
			
		


			HOTEL PROPERTIES
			
			
			26,914,011
			
			
			220,300
			
			
			$841,003
			
			
			220,300
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			3,856,100
			
			
			$550,622
			
			
			65,034,800
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS .
			
			
			98,262,340
			
			
			806,700
			
			
			$408,055
			
			
			6,980,700
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			42,417,689
			
			
			867,000
			
			
			$251,942
			
			
			15,223,700
			
		


			AEI CORPORATION
			
			
			5,673,215
			
			
			197,600
			
			
			$190,585
			
			
			3,009,200
			
		


			SPACKMAN ENTERTAINMENT GROUP
			
			
			103,096,560
			
			
			12,000,000
			
			
			$170,528
			
			
			12,000,000
			
		


			CHEUNG WOH TECHNOLOGIES
			
			
			30,189,290
			
			
			822,500
			
			
			$124,624
			
			
			4,188,400
			
		


			ANCHUN INTERNATIONAL HOLDINGS .
			
			
			5,008,260
			
			
			376,900
			
			
			$102,909
			
			
			1,391,700
			
		


			INTRACO
			
			
			10,372,588
			
			
			238,500
			
			
			$70,397
			
			
			620,800
			
		


			KIMLY
			
			
			115,489,763
			
			
			280,000
			
			
			$67,589
			
			
			5,994,700
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,426,699
			
			
			24,500
			
			
			$14,994
			
			
			424,500
			
		


			CDW HOLDING
			
			
			22,724,200
			
			
			56,000
			
			
			$10,054
			
			
			4,052,900
			
		


			Total
			
			
			 
			
			
			42,604,272
			
			
			$70,081,012
			
			
			 
			
		

 Source: SGX (Data as of 31 December 2019)

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.



Primary-Listed Stocks Bought Back S$590 Million in Shares in 2019