August share buybacks hit 35-month-high
Share buybacks hit a 35-month-high last month as companies flush with cash took advantage of a softer stock market.
Around 43.6 million shares worth $245.4 million were repurchased by about 30 companies, more than twice July's level of $109 million.
Last month's value of share buybacks was more than four times the $59.7 million shelled out in the same month last year, showed a Singapore Exchange My Gateway report.
DBS Group Holdings topped the list of buybacks by value, scooping up 5.95 million of its own shares for $150.8 million, or roughly 61 per cent of the value of all share buybacks in August.
Other index stocks CapitaLand, United Overseas Bank, OCBC Bank and City Developments rounded out the top five share buybacks by value.
The five companies together accounted for about $230.2 million, or 93 per cent, of last month's buybacks.
Companies buy back their own shares for a number of reasons, ranging from their stock being undervalued to a desire to improve financial ratios, such as earnings per share.
They also take the opportunity when prices are low to buy shares that can be reissued to senior management as part of pay packages.
The Straits Times Index fell 3 per cent last month as trade tensions between the US and China remained volatile and emerging market currencies continued to weaken.
Nine companies started new buyback mandates last month, including City Developments, Stamford Land Corporation, Singapore Shipping Corporation, Maxi-Cash Financial Services Corporation and Japan Foods Holding.
HRnetGroup posted the largest buyback outlay by a non-index stock last month.
The Singapore-headquartered recruitment agency, which has offices across Asia, bought back 2.4 million shares for $2.2 million. - THE STRAITS TIMES
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