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3 Things Investors Should Know About Singapore Market Stock Buybacks In May

Singapore Exchange Limited (SGX: S68) recently issued a report on stock buyback activities for May. This report gives a concise summary of the information that investors may want to know about stock buybacks.

Personally, I pay close attention to such reports since they provide a great overview of market activities, as well as acting as a source of potential investment ideas.

Given that most of our readers do not have time to go through such lengthy reports, I thought it would be useful to summarise the important parts of the report in this article in the following three points.

1. Overview

Last month, 24 primary-listed stocks on SGX bought back close to 40 million shares with a total amount of S$123 million. This was up from S$36 million in April 2019 but down from S$135 million in May 2018.

Below is a quick summary of monthly share buybacks for the last few years:

Source: SGX

2. Banks are the biggest buyer of its own stocks

Two of the local banks, DBS Group Holdings Ltd (SGX: D05) and Oversea-Chinese Banking Corp Limited (SGX: O39), were the biggest buyers of their own stocks in May.

The former bought back 2.60 million of its shares for S$65.7 million while the later bought back 2.78 million shares for S$30.6 million.

3. New mandates

Meanwhile, 13 companies commenced new buyback mandates in the month of May 2019.

This included blue chips like DBS, OCBC and Singapore Technologies Engineering Ltd (SGX: S63) or STE. For those who are new to STE, it is a conglomerate with business interests in various sectors, namely Aerospace, Electronics, Land Systems, Marine and others.

Some of the smaller companies that commenced new mandates are Raffles Medical Group Ltd (SGX: BSL), AEM Holdings Ltd. (SGX: AWX), JUMBO Group Ltd (SGX: 42R) and Olam International Ltd (SGX: O32).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool Singapore has recommended shares of DBS Group Ltd, Raffles Medical Group Ltd, AEM Holdings Ltd, and Oversea-Chinese Banking Corp Limited.