3 Straits Times Index Components That Bought Back Their Shares Last Week

Warren Buffett is someone who strongly encourages companies to buy back their shares if the conditions are right. In his 1984 Letter to Shareholders, he commented:

“When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.”

On that note, let’s check out three blue-chip companies picked at random that have repurchased their shares last week.

Oversea-Chinese Banking Corporation Limited (SGX: O39)

Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.

On 5, 6, 7 and 8 March 2018, OCBC bought back 800,000 shares at a price range of between S$13.07 and S$13.34 apiece. The total cost was around S$10.6 million.

Shares of OCBC closed at $13.25 on Friday, giving a price-to-book ratio of 1.5 and a dividend yield of 2.8%.

Singapore Exchange Limited (SGX: S68)

Singapore Exchange is the only stock market operator in our country providing listing, trading, clearing, settlement, depository and data services.

On 5 and 6 March, the company repurchased a total of 197,000 shares at a price range of between S$7.46 and S$7.49, spending slightly below S$1.5 million in all.

At the closing price of S$7.50 on Friday, SGX was going at a trailing price-to-earnings (PE) ratio of 23 and had a trailing dividend yield of 3.7%.

SATS Ltd (SGX: S58)

According to its website, SATS is “the leading provider of gateway services and food solutions in the region”. Some of the services it provides include airline catering, baggage and ramp handling, passenger services, aviation security and cruise handling.

On 5 and 7 March, the firm bought back 600,000 shares at a price range of S$4.94 to S$4.99. The total cost was just below S$3 million.

SATS shares ended Friday at S$5.12. The price translates to a trailing PE ratio of around 22 and a trailing dividend yield of 3.3%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited and SATS Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited and SATS Ltd.