Company Buyback

Company Buyback shows the trades made by the company buying back its own shares.

Sections 76B, 76C, 76D and 76E of the Companies Act allow a company to purchase its own shares after obtaining the general approval of shareholders at the company's AGM until its next AGM.

Share purchases by the company may indicate under-valuation of its share by the market as the Directors exercising the authority for share buyback are duty bound to do so in the best interest of the company and after ensuring that the rationale  1 1 Typical rationale for share buyback includes: (a) enhancing ROE; (b) enhancing EPS and/or NTA; (c) mitigating short-term market volatility; (d) offset short-term speculative attack by short-sellers; (e) bolster shareholder confidence; and (f) minimize dilution impact of employee share option scheme (ESOS) by using Treasury shares to honour the company's ESOS obligation instead of the issuing new shares for each share buyback is in accordance with the basis on which shareholders' approval was obtained.

The first level data displayed are under 3 tabs:

  1. Buyback Overview
  2. Latest Buyback
  3. Individual Company Buyback

Buyback Overview

Fundamental - Company Buyback - Buyback Overview

This section shows a summary of all Company Buyback in the past 2 years and by default is sorted in descending order by the Total No. of Trades for 2 years. The data view could also be re-organized by other sorting criterion such as by no. of trades in a year, by cumulative volume in any year or for 2 years, and by cumulative value in any year or for 2 years. Convenient links are provided to allow the user to access the company's fundamental data as well as zoom into the details of the individual company buyback.

Latest Buyback

Fundamental - Company Buyback - Latest Buyback

This section allows the user to scan the latest company buybacks consolidated in a single list. Key details from the company's daily share buy-back notices will pop up when the mouse is hovered over the relevant note icon.

Individual Company Buyback

This section is organized into 3 parts: At the top, there is an analysis of the company buyback for the last 3 calendar years (by quarters) and by Trades, Volume and Value as illustrated in the OCBC example below.

Fundamental - Company Buyback - Individual Company Buyback - Number of Trades

Fundamental - Company Buyback - Individual Company Buyback - Transaction Volume

Fundamental - Company Buyback - Individual Company Buyback - Transaction Value

In the middle, there is the company buyback chart (which can also be hidden if not required). This chart provides useful visual correlation between the buyback transactions and the stock price at one glance.

Fundamental - Company Buyback - Individual Company Buyback - Buyback Chart

In the bottom, there is a complete 3-year listing of all buybacks made by the company and announced to the public on the SGX website.

Fundamental - Company Buyback - Buyback Transaction