Well-renowned investor, Warren Buffett, is a huge advocate of businesses buying back their shares. He believes that share buybacks can increase shareholder value if done for the right reasons. On that note, let’s check out three blue-chips that have repurchased their shares thus far during the week, as of market open today.
Oversea-Chinese Banking Corp 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 9, 10, 11 and 12 July 2018, OCBC bought back a total of 300,000 shares at a price range of between S$11.31 and S$11.51 per share. The total cost was around S$3.4 million.
The bank’s shares closed at S$11.30 apiece on Thursday. This translates to a price-to-book (PB) ratio of 1.2 and a dividend yield of 3.3%.
United Overseas Bank Ltd (SGX: U11)
With more than 500 branches in 19 countries, United Overseas Bank (UOB) is one of the largest banks in Southeast Asia.
On 9, 10, 11 and 12 July, UOB bought back 320,047 shares ranging from S$26.05 to S$26.99 per share, translating to a total cost of around S$8.5 million.
UOB shares last changed hands at S$26.68 each on Thursday. This gives a PB ratio of 1.2 and a dividend yield of 3%, excluding special dividend.
Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)
Yangzijiang is the largest China-based company in the Singapore stock market. It is also a leading shipbuilder in China in terms of manufacturing capability and capacity.
On 11 July, Yangzijiang repurchased 3,000,000 shares at S$0.90 apiece, translating to a cost of slightly above S$2.7 million.
Yangzijiang closed at S$0.885 per share on Thursday. The firm was selling at close to 6 times trailing earnings and had a dividend yield of 5.1%.
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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 United Overseas Bank Ltd. Motley Fool Singapore contributor Sudhan P does not own shares in any companies mentioned.