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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<li>
In September, 24 SGX primary-listed stocks bought back shares for a total consideration of S$43 million, higher than the S$15 million in consideration for August 2020, and seasonally higher than the S$15 million buyback consideration also reported in September 2019. 
	 </li>
	<li>
STI constituents Yangzijiang Shipbuilding (Holdings), Keppel Corporation and Singapore Technologies Engineering led the buyback consideration in September. As many as nine companies commenced new mandates, which included Ho Bee Land and Boustead Singapore. 
	 </li>
	<li>While the STI declined 2.6% in September, together the SPDR® STI ETF and Nikko AM STI ETF added net creations of S$103 million in September as investors continued to accumulate units. The S$807 million in  combined net creations for the two ETFS in the first nine months of 2020 is up 359% from the entire 2019 year.</li>
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Total share buyback consideration for the month of September totaled S$43.1 million, 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) and up from up from S$2.9 million in July (click <a href="https://www.sgx.com/research-education/market-updates/20200804-buyback-consideration-modern-low-earnings-take-centre">here</a> for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$724 million for the first nine months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$724 million represents 0.09% of the combined S$797.8 billion in market capitalisation of all stocks listed on Singapore Exchange at the end of September. 
The S$43.1 million in September buyback consideration coincided with a 2.6% price decline in the Straits Times Index (“STI”) to 2,466.62. 
The STI’s 2.6% decline in  September saw its 10-day historical volatility end at 11.5%, similar to the August month-end level of 11.8%. However, during the month the STI 10-day historical volatility reached a low of 4.5%, levels not seen since January 2020.  For context, on 15 June, the STI 10-day historical volatility reached as high as 34%, and as high as 80% on 25 March and 31 March.
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Together, the SPDR® STI ETF and Nikko AM STI ETF garnered net creations of S$807 million over the first nine months of 2020 as investors accumulated units amidst the market declines. The S$807 million is up 359% from the total net creations of S$176 million for the entire 2019 year. As many as nine of the 24 companies 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. This followed on from 11 companies - Keppel Corporation, AEM Holdings, First Resources, Straco Corporation, Avarga, China Sunsine Chemical Holdings, YHI International, HRnetGroup, MDR, Ban Leong Technologies and Intraco, commencing new buyback mandates in August. The table below summarises the buyback considerations in September 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 Sep 2020
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Sep 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>
			17,277,700
			</td>
			<td>
			$16,426,385
			</td>
			<td>
			$0.95
			</td>
			<td>
			30,004,500
			</td>
		</tr>
<tr>
<td>
			KEPPEL CORPORATION
			</td>
			<td>
			36,410,340
			</td>
			<td>
			1,940,904
			</td>
			<td>
			$8,476,410
			</td>
			<td>
			$4.37
			</td>
			<td>
			3,061,504
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING
			</td>
			<td>
			62,429,441
			</td>
			<td>
			1,250,000
			</td>
			<td>
			$4,266,822
			</td>
			<td>
			$3.41
			</td>
			<td>
			6,250,000
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			264,505,273
			</td>
			<td>
			11,450,100
			</td>
			<td>
			$3,533,839
			</td>
			<td>
			$0.31
			</td>
			<td>
			67,145,900
			</td>
		</tr>
<tr>
<td>
			FIRST RESOURCES
			</td>
			<td>
			158,268,446
			</td>
			<td>
			2,650,300
			</td>
			<td>
			$3,346,685
			</td>
			<td>
			$1.26
			</td>
			<td>
			3,068,700
			</td>
		</tr>
<tr>
<td>
			HO BEE LAND
			</td>
			<td>
			33,261,530
			</td>
			<td>
			1,133,700
			</td>
			<td>
			$2,536,179
			</td>
			<td>
			$2.24
			</td>
			<td>
			1,133,700
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			161,476,125
			</td>
			<td>
			11,253,700
			</td>
			<td>
			$1,528,457
			</td>
			<td>
			$0.14
			</td>
			<td>
			22,254,500
			</td>
		</tr>
<tr>
<td>
			YHI INTERNATIONAL
			</td>
			<td>
			29,229,581
			</td>
			<td>
			1,593,800
			</td>
			<td>
			$569,538
			</td>
			<td>
			$0.36
			</td>
			<td>
			1,793,800
			</td>
		</tr>
<tr>
<td>
			BOUSTEAD SINGAPORE
			</td>
			<td>
			48,714,422
			</td>
			<td>
			708,800
			</td>
			<td>
			$489,939
			</td>
			<td>
			$0.69
			</td>
			<td>
			708,800
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			27,331,270
			</td>
			<td>
			133,000
			</td>
			<td>
			$466,899
			</td>
			<td>
			$3.51
			</td>
			<td>
			278,000
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS
			</td>
			<td>
			97,226,160
			</td>
			<td>
			1,271,500
			</td>
			<td>
			$449,886
			</td>
			<td>
			$0.35
			</td>
			<td>
			1,481,500
			</td>
		</tr>
<tr>
<td>
			STARBURST HOLDINGS
			</td>
			<td>
			12,171,506
			</td>
			<td>
			776,200
			</td>
			<td>
			$318,557
			</td>
			<td>
			$0.41
			</td>
			<td>
			776,200
			</td>
		</tr>
<tr>
<td>
			GKE CORPORATION
			</td>
			<td>
			77,617,409
			</td>
			<td>
			2,000,000
			</td>
			<td>
			$155,868
			</td>
			<td>
			$0.08
			</td>
			<td>
			12,357,800
			</td>
		</tr>
<tr>
<td>
			FOOD EMPIRE HOLDINGS
			</td>
			<td>
			53,597,249
			</td>
			<td>
			250,000
			</td>
			<td>
			$149,675
			</td>
			<td>
			$0.60
			</td>
			<td>
			250,000
			</td>
		</tr>
<tr>
<td>
			TIONG SENG HOLDINGS
			</td>
			<td>
			45,962,384
			</td>
			<td>
			862,400
			</td>
			<td>
			$114,408
			</td>
			<td>
			$0.13
			</td>
			<td>
			862,400
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,019,100
			</td>
			<td>
			455,300
			</td>
			<td>
			$92,128
			</td>
			<td>
			$0.20
			</td>
			<td>
			455,300
			</td>
		</tr>
<tr>
<td>
			ECOWISE HOLDINGS
			</td>
			<td>
			95,648,612
			</td>
			<td>
			1,669,800
			</td>
			<td>
			$50,824
			</td>
			<td>
			$0.03
			</td>
			<td>
			1,669,800
			</td>
		</tr>
<tr>
<td>
			EUROSPORTS GLOBAL
			</td>
			<td>
			26,086,770
			</td>
			<td>
			202,600
			</td>
			<td>
			$32,604
			</td>
			<td>
			$0.16
			</td>
			<td>
			202,600
			</td>
		</tr>
<tr>
<td>
			LY CORPORATION
			</td>
			<td>
			48,914,420
			</td>
			<td>
			155,000
			</td>
			<td>
			$27,372
			</td>
			<td>
			$0.18
			</td>
			<td>
			175,000
			</td>
		</tr>
<tr>
<td>
			INTRACO
			</td>
			<td>
			10,292,587
			</td>
			<td>
			73,000
			</td>
			<td>
			$18,715
			</td>
			<td>
			$0.26
			</td>
			<td>
			78,000
			</td>
		</tr>
<tr>
<td>
			MDR
			</td>
			<td>
			89,039,757
			</td>
			<td>
			142,200
			</td>
			<td>
			$11,478
			</td>
			<td>
			$0.08
			</td>
			<td>
			443,100
			</td>
		</tr>
<tr>
<td>
			KIM HENG OFFSHORE &amp; MARINE HOLDINGS
			</td>
			<td>
			70,820,730
			</td>
			<td>
			300,000
			</td>
			<td>
			$9,385
			</td>
			<td>
			$0.03
			</td>
			<td>
			300,000
			</td>
		</tr>
<tr>
<td>
			CHOO CHIANG HOLDINGS
			</td>
			<td>
			20,800,000
			</td>
			<td>
			5,500
			</td>
			<td>
			$1,235
			</td>
			<td>
			$0.22
			</td>
			<td>
			61,300
			</td>
		</tr>
<tr>
<td>
			HRNETGROUP
			</td>
			<td>
			100,652,263
			</td>
			<td>
			2,300
			</td>
			<td>
			$1,130
			</td>
			<td>
			$0.49
			</td>
			<td>
			131,000
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td>
			 
			</td>
			<td>
			57,557,804
			</td>
			<td>
			$43,074,417
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: SGX (Data as of 30 September 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 September, 24 SGX primary-listed stocks bought back shares for a total consideration of S$43 million, higher than the S$15 million in consideration for August 2020, and seasonally higher than the S$15 million buyback consideration also reported in September 2019.  
	 
	
STI constituents Yangzijiang Shipbuilding (Holdings), Keppel Corporation and Singapore Technologies Engineering led the buyback consideration in September. As many as nine companies commenced new mandates, which included Ho Bee Land and Boustead Singapore.  
	 
	While the STI declined 2.6% in September, together the SPDR® STI ETF and Nikko AM STI ETF added net creations of S$103 million in September as investors continued to accumulate units. The S$807 million in  combined net creations for the two ETFS in the first nine months of 2020 is up 359% from the entire 2019 year.

 

Total share buyback consideration for the month of September totaled S$43.1 million, up from $15.1 million in August (click here for more) and up from up from S$2.9 million in July (click here for more). This has brought the total consideration of share buybacks for SGX primary-listed stocks to S$724 million for the first nine months of 2020, up from S$590 million in consideration for the entire calendar year of 2019. The S$724 million represents 0.09% of the combined S$797.8 billion in market capitalisation of all stocks listed on Singapore Exchange at the end of September.  
The S$43.1 million in September buyback consideration coincided with a 2.6% price decline in the Straits Times Index (“STI”) to 2,466.62.  
The STI’s 2.6% decline in  September saw its 10-day historical volatility end at 11.5%, similar to the August month-end level of 11.8%. However, during the month the STI 10-day historical volatility reached a low of 4.5%, levels not seen since January 2020.  For context, on 15 June, the STI 10-day historical volatility reached as high as 34%, and as high as 80% on 25 March and 31 March.



      
    
    Buyback Consideration


Together, the SPDR® STI ETF and Nikko AM STI ETF garnered net creations of S$807 million over the first nine months of 2020 as investors accumulated units amidst the market declines. The S$807 million is up 359% from the total net creations of S$176 million for the entire 2019 year.  As many as nine of the 24 companies 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. This followed on from 11 companies - Keppel Corporation, AEM Holdings, First Resources, Straco Corporation, Avarga, China Sunsine Chemical Holdings, YHI International, HRnetGroup, MDR, Ban Leong Technologies and Intraco, commencing new buyback mandates in August.  The table below summarises the buyback considerations in September 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 Sep 2020
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in Sep 2020
			
			
			Average Price Paid S$
			
			
			Cumulative Number of Shares/units purchased in Mandate to date
			
		


			YANGZIJIANG SHIPBUILDING (HOLDINGS)
			
			
			391,876,520
			
			
			17,277,700
			
			
			$16,426,385
			
			
			$0.95
			
			
			30,004,500
			
		


			KEPPEL CORPORATION
			
			
			36,410,340
			
			
			1,940,904
			
			
			$8,476,410
			
			
			$4.37
			
			
			3,061,504
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING
			
			
			62,429,441
			
			
			1,250,000
			
			
			$4,266,822
			
			
			$3.41
			
			
			6,250,000
			
		


			SILVERLAKE AXIS
			
			
			264,505,273
			
			
			11,450,100
			
			
			$3,533,839
			
			
			$0.31
			
			
			67,145,900
			
		


			FIRST RESOURCES
			
			
			158,268,446
			
			
			2,650,300
			
			
			$3,346,685
			
			
			$1.26
			
			
			3,068,700
			
		


			HO BEE LAND
			
			
			33,261,530
			
			
			1,133,700
			
			
			$2,536,179
			
			
			$2.24
			
			
			1,133,700
			
		


			GLOBAL INVESTMENTS
			
			
			161,476,125
			
			
			11,253,700
			
			
			$1,528,457
			
			
			$0.14
			
			
			22,254,500
			
		


			YHI INTERNATIONAL
			
			
			29,229,581
			
			
			1,593,800
			
			
			$569,538
			
			
			$0.36
			
			
			1,793,800
			
		


			BOUSTEAD SINGAPORE
			
			
			48,714,422
			
			
			708,800
			
			
			$489,939
			
			
			$0.69
			
			
			708,800
			
		


			AEM HOLDINGS
			
			
			27,331,270
			
			
			133,000
			
			
			$466,899
			
			
			$3.51
			
			
			278,000
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS
			
			
			97,226,160
			
			
			1,271,500
			
			
			$449,886
			
			
			$0.35
			
			
			1,481,500
			
		


			STARBURST HOLDINGS
			
			
			12,171,506
			
			
			776,200
			
			
			$318,557
			
			
			$0.41
			
			
			776,200
			
		


			GKE CORPORATION
			
			
			77,617,409
			
			
			2,000,000
			
			
			$155,868
			
			
			$0.08
			
			
			12,357,800
			
		


			FOOD EMPIRE HOLDINGS
			
			
			53,597,249
			
			
			250,000
			
			
			$149,675
			
			
			$0.60
			
			
			250,000
			
		


			TIONG SENG HOLDINGS
			
			
			45,962,384
			
			
			862,400
			
			
			$114,408
			
			
			$0.13
			
			
			862,400
			
		


			NORDIC GROUP
			
			
			39,019,100
			
			
			455,300
			
			
			$92,128
			
			
			$0.20
			
			
			455,300
			
		


			ECOWISE HOLDINGS
			
			
			95,648,612
			
			
			1,669,800
			
			
			$50,824
			
			
			$0.03
			
			
			1,669,800
			
		


			EUROSPORTS GLOBAL
			
			
			26,086,770
			
			
			202,600
			
			
			$32,604
			
			
			$0.16
			
			
			202,600
			
		


			LY CORPORATION
			
			
			48,914,420
			
			
			155,000
			
			
			$27,372
			
			
			$0.18
			
			
			175,000
			
		


			INTRACO
			
			
			10,292,587
			
			
			73,000
			
			
			$18,715
			
			
			$0.26
			
			
			78,000
			
		


			MDR
			
			
			89,039,757
			
			
			142,200
			
			
			$11,478
			
			
			$0.08
			
			
			443,100
			
		


			KIM HENG OFFSHORE &amp; MARINE HOLDINGS
			
			
			70,820,730
			
			
			300,000
			
			
			$9,385
			
			
			$0.03
			
			
			300,000
			
		


			CHOO CHIANG HOLDINGS
			
			
			20,800,000
			
			
			5,500
			
			
			$1,235
			
			
			$0.22
			
			
			61,300
			
		


			HRNETGROUP
			
			
			100,652,263
			
			
			2,300
			
			
			$1,130
			
			
			$0.49
			
			
			131,000
			
		


			Total
			
			
			 
			
			
			57,557,804
			
			
			$43,074,417
			
			
			 
			
			
			 
			
		

Source: SGX (Data as of 30 September 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.



China Sunsine Chemical Holdings Ltd (CSSC SP)

Share Buyback Consideration Reaches 6M High in September