October has been a really topsy-turvy month for US equities, which had spill over effects around the world, including the Singapore market. The STI declined from 3257.1 to 3018.8 in October, which represents a 7.3% dip.
During market downturns, it is common for companies to take advantage of the dip in prices to execute share buyback mandates. Thus, it is not surprising to see that in October, 29 SGX-listed companies made share buybacks for a total consideration of $59.9 million.
October’s buyback activity brought the total share buyback consideration in 2018 to S$1.34 billion. This is more than 3 times the volume compared to whole of 2017.
For this week’s episode of 4 Stocks This Week, we’ll look at the 4 companies with the largest share buyback considerations for October – namely, DBS, City Developments, SATS and Keppel REIT.
For the latest share buyback announcements, you can visit the company disclosure page on the SGX website, under Announcement, and filtering for Share Buy Back-On Market.
DBS Group Holdings Ltd (SGX: D05)
DBS Group – the largest capitalised company on the STI – bought back 1.0 million of its own shares, worth about $24.31 million in October 2018.
This month’s buyback adds to a consistent stream of buybacks, totalling 10 million shares thus far. Based on its share buyback mandate, DBS can repurchase around 51.3 million shares.
DBS Group’s shares closed trading this week at $24.66, which is substantially lower from a year-to-date high of $30,84 in April.
Keppel REIT (SGX: K71U)
With assets under management worth around $8 billion, Keppel REIT is also on the STI Reserve List. It has a portfolio consisting of premium office assets in Singapore and key Australian cities like Sydney, Melbourne, Brisbane and Perth.
Their Singapore assets include Ocean Financial Centre (99.9% interest), Marina Bay Financial Centre (Office Towers 1, 2, 3 and Marina Bay Link Mall) (1/3 interest), One Raffles Quay (1/3 interest) and Bugis Junction Towers (100% interest).
Keppel REIT’s buyback mandate of 169 million shares was approved in 20 April 2018 and commenced on 27 July 2018.
In October, Keppel REIT executed share buyback of about 5.36 million shares, worth about $6 million. To date, Keppel REIT has purchased 10.6 million shares under its buyback mandate.
The stock closed at $1.15 this week.
City Developments Limited (SGX: C09)
City Developments Limited (CDL) is a global real estate company with operations spanning 100 locations in 28 countries. Its geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls.
Over the past 50 years, CDL has developed over 40,000 homes and owns more than 18 million square feet of lettable floor area globally. CDL has a well-stocked land bank with a solid development pipeline in Singapore, China, the United Kingdom, Japan and Australia.
CDL currently has a buyback mandate to repurchase 90.9 million shares. In October, it repurchased 700,000 shares for a consideration of $5.78 million. This brings its culminative buyback to 2.4 million shares.
CDL’s stock closed at $8.55 this week, down from a 52-week high of $13.52.
SATS (SGX: S58)
SATS Ltd. is an investment holding company that provides gateway services and food solutions in Singapore, Japan, and internationally. It also operates the Marina Bay Cruise Centre in Singapore. With operations at 47 airports in 14 countries, SATS currently employs a workforce of more than 13,000 people.
In September, SATS announced their share buyback plan for 22.34 million shares. In October, SATS spent $4.76 million to repurchase 976,100 shares. Steady repurchase activity can be expected in the following months.
SATS closed this week at $5.01.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.
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